* U.S. 10-year yield down after seven sessions higher
* Oil falls on demand concern despite U.S. inventory dip
* Global asset performance http://tmsnrt.rs/2yaDPgn
* World FX rates http://tmsnrt.rs/2egbfVh (Updates throughout, changes dateline; previous LONDON)
By Rodrigo Campos
NEW YORK, Jan 13 (Reuters) - Treasury yields fell on Wednesday after Federal Reserve officials steered clear of tightening monetary conditions any time soon despite expectations of higher inflation, while stocks edged higher and an inventory spike pressured oil prices lower.
The U.S. benchmark yield was on track to post its first full-session decline in 2021 even as a jump in gasoline pushed inflation higher last month. Consumer prices are expected to run hotter in a couple of months when March and April of 2020, which saw very low inflation, fall off the yearly reading.
The climb in yields is expected to resume, partly due to a massive stimulus package from the incoming Joe Biden administration, which takes office on Jan. 20.
Several Fed policymakers pushed back against the idea of the Fed tapering its asset purchases any time soon, however. edged up as Europe was boosted by deals and U.S. tech stocks were supported by a change of leadership at Intel INTC.O , which jumped 8.2%.
On Wall Street, the Dow Jones Industrial Average .DJI rose 66.94 points, or 0.22%, to 31,135.63, the S&P 500 .SPX gained 14.25 points, or 0.37%, to 3,815.44 and the Nasdaq Composite .IXIC added 86.81 points, or 0.66%, to 13,159.24.
The pan-European STOXX 600 index .STOXX rose 0.11% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.40%. Emerging market stocks rose 0.62%.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.58% higher, while Japan's Nikkei .N225 rose 1.04%.
The U.S. dollar index rose for the fourth time in five sessions, still not far from near three-year lows hit last week.
The greenback has found support from expectations of a continued economic recovery in the United States, even as countries in Europe resort to lockdowns to fend off a second COVID-19 wave.
"You are seeing a continuance of the U.S. outperformance trade," said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto.
The dollar index =USD rose 0.233%, with the euro EUR= down 0.31% to $1.2169.
The Japanese yen weakened 0.06% versus the greenback at 103.80 per dollar, while sterling GBP= was last trading at $1.3648, down 0.11% on the day.
Benchmark U.S. 10-year notes US10YT=RR last rose 16/32 in price to yield 1.0849%, from 1.138% late on Tuesday.
Oil prices fell as the threat of lower demand due to rising global COVID-19 cases outweighed support from a greater-than-anticipated drop in U.S. crude inventories.
"While I see crude prices trading higher over the coming months, investors need to be mindful that the road to higher oil demand and prices will remain bumpy," UBS oil analyst Giovanni Staunovo said.
U.S. crude CLc1 recently fell 0.55% to $52.92 per barrel and Brent LCOc1 was at $56.03, down 0.97% on the day.
Spot gold XAU= added 0.1% to $1,857.86 an ounce. Silver XAG= fell 0.21% to $25.52.
Bitcoin BTC=BTSP last rose 2.27% to $34,807.04.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Emerging market assets year-to-date
http://tmsnrt.rs/2ihRugV Global asset performance in 2021
http://tmsnrt.rs/2yaDPgn U.S. 10-year Treasury yield
https://tmsnrt.rs/2LKSb2K Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh
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