U.S. TIPS breakevens widen after July PPI data

NEW YORK, July 14 (Reuters) - A gauge of traders' inflation expectations grew in early morning trading on Tuesday after government data showed U.S. producer prices rose more than expected in July.

The gap, or breakevens, between the yields on benchmark U.S. 10-year government notes and 10-year Treasury Inflation Protected Securities (TIPS), moved out to 1.56 percent. This compares with 1.55 percent shortly before the release of the government's Producer Price Index.

(Reporting by Richard Leong, editing by W Sinon)