NEW YORK, Oct 13 (Reuters) - Yields on shorter-term Treasuries rose on Wednesday, while longer-dated yields dipped following data on consumer prices that further fanned rising inflation concerns. The consumer price index rose 0.4% last month after climbing 0.3% in August, the Labor Department said on Wednesday. In the 12 months through September, the CPI increased 5.4% after advancing 5.3% year-on-year in August. The yield on the two-year Treasury note, which typically moves in step with interest rate expectations, was up 2.2 basis points to 0.370% after reaching a high of 0.394%, its highest since March 24, 2020. The three-year note yield was up 1.8 basis points to 0.659% after climbing to 0.701%, its highest since March 5, 2020. But longer-dated yields fell, indicating the market is still not pricing in a sustained period of inflation, which served to flatten the yield curve. "Obviously there is enough there for people to continue the flattening trade and just take intermediate Treasury yields to fresh highs," said Jim Vogel, interest rate strategist at FHN Financial in Memphis, Tennessee. "So the inflation story just continues to mount with just sort of any news people will find reasons to be more concerned about inflation." A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, was at 118.2 basis points after falling to 118.1, its lowest level in two weeks. The curve had steepened to a 3-1/2 month high of 129.7 on Friday. On Tuesday, three U.S. Federal Reserve policymakers on Tuesday said the economy has healed enough for the central bank to begin to withdraw its crisis-era support, cementing expectations the Fed will start to taper its monthly bond purchases as soon as next month. The yield on 10-year Treasury notes was down 2.6 basis points to 1.554%. An auction of $24 billion of 30-year bonds is scheduled for 1 p.m. EDT (1700 GMT) Wednesday. The Treasury auctioned $58 billion of three-year notes and $38 billion of 10-year notes on Tuesday. The yield on the 30-year Treasury bond was down 4.9 basis points to 2.056%. October 13 Wednesday 9:52AM New York / 1352 GMT Price US T BONDS DEC1 159-13/32 0-27/32 10YR TNotes DEC1 131-60/256 0-24/256 Price Current Net Yield % Change (bps) Three-month bills 0.05 0.0507 -0.002 Six-month bills 0.0575 0.0583 0.002 Two-year note 99-196/256 0.37 0.022 Three-year note 99-230/256 0.6593 0.018 Five-year note 99 1.0825 0.008 Seven-year note 99-40/256 1.3775 -0.010 10-year note 97-60/256 1.5542 -0.026 30-year bond 98-192/256 2.0562 -0.049 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 12.50 0.50 spread U.S. 3-year dollar swap 12.50 -2.75 spread U.S. 5-year dollar swap 7.25 -0.75 spread U.S. 10-year dollar swap 1.25 -0.50 spread U.S. 30-year dollar swap -23.50 0.25 spread (Reporting by Chuck Mikolajczak; Editing by Kirsten Donovan) Our Standards: The Thomson Reuters Trust Principles.