US TIPS breakeven rates add gains after Nov CPI
NEW YORK: The US bond market’s gauges on investors’ inflation expectations extended their earlier rise on Tuesday as data showed the trend in domestic price growth remained intact in November.
The Labor Department said in the 12 months through November, the core rate on the consumer price index (CPI) rose 2.0 percent, the largest gain since May 2014, after rising 1.9 percent in October.
The CPI core rate excludes volatile food and energy prices. The yield premium on regular five-year Treasuries notes over five-year Treasury Inflation Protected Securities was last at 1.21 percentage points, up 5 basis points from late Monday, Tradeweb data showed.
The 10-year TIPS inflation breakeven rate, which measures investors’ inflation outlook in 10 years, was up 4 basis points to 1.53 percentage points.