TREASURIES-U.S. yields rise after producer prices data; focus on supply next week

* U.S. producer prices rise more than expected * U.S. yield curve steepens, with 2-year/10 year spread at 149 bps * Looming $120 billion in Treasury supply next week * Investors also look to CPI next week (Adds new comment, bullets updates prices) By Gertrude Chavez-Dreyfuss…