TREASURIES-U.S. yields hit session highs after Nov PPI data

NEW YORK, Dec 12 (Reuters) - U.S. Treasury yields reached session peaks on Tuesday as data showed domestic producer prices recorded their largest annual gain in nearly six years in November, supporting the view inflation may be picking up.

At 8:37 a.m. (1335 GMT), the yield on benchmark 10-year government notes was 2.401 percent, up 1.6 basis points from late on Monday, while the two-year Treasury yield was 1.843 percent, 2 basis points higher than late Monday, Reuters data showed.

(Reporting by Richard Leong Editing by Chizu Nomiyama)