* U.S. 10-year yield breaches 1.7% on Thursday, then slips * Five-year breakeven inflation rate rises above 3% By Herbert Lash NEW YORK, Oct 22 (Reuters) - Yields on longer-dated U.S. Treasuries edged lower on Friday after the benchmark 10-year note breached 1.7% overnight, while key market gauges of rising consumer prices kept pressing higher on concerns about inflation. The yield on 10-year Treasury notes was down 0.5 basis points to 1.670% after rising to a five-month high of 1.7064% late Thursday. The five-year, U.S. break-even inflation rate breached 3% in early trading, then slid. The market in several weeks, if not sooner, will test the year"s high hit March 30 of 1.776% on the 10-year Treasury, said Tom di Galoma, managing director at Seaport Global Holdings. "If we get through that, all bets are off we"re not going to see higher rates," di Galoma said. "Then we"ll probably see 2% pretty quickly." Rates are rising worldwide on a global supply crunch of semiconductor chips for the automotive industry, di Galoma said. The 10-year UK break-even rate hit a 25-year high of 4.29% earlier on Friday, he said. The yield on the 30-year Treasury bond was down 2.1 basis points to 2.107%. 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 121.3 basis points. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 1.9 basis points at 0.455%. The break-even rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) was last at 2.943%, after closing at 2.894% on Thursday, a year-high. The 10-year TIPS break-even rate was last at 2.663%, indicating the market sees inflation averaging about 2.7% a year for the next decade. The U.S. dollar 5 years forward inflation-linked swap , seen by some as a better gauge of inflation expectations due to possible distortions caused by the Fed"s quantitative easing, was last at 2.588%. Oct. 22 Friday 9:28AM New York / 1328 GMT Price Current Net Yield % Change (bps) Three-month bills 0.055 0.0558 0.000 Six-month bills 0.06 0.0609 0.000 Two-year note 99-155/256 0.4554 0.019 Three-year note 99-134/256 0.7875 0.016 Five-year note 98-86/256 1.2237 0.011 Seven-year note 98-74/256 1.5109 0.002 10-year note 96-56/256 1.6695 -0.005 20-year bond 94-156/256 2.0835 -0.016 30-year bond 97-164/256 2.1069 -0.021 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 16.50 0.00 spread U.S. 3-year dollar swap 14.75 0.25 spread U.S. 5-year dollar swap 7.25 0.25 spread U.S. 10-year dollar swap 1.00 0.25 spread U.S. 30-year dollar swap -22.50 0.25 spread (Reporting by Herbert Lash Editing by Mark Heinrich)