NEW YORK Dec 15 The U.S. bond market's gauges
on inflation expectations weakened to their lowest levels in
more than a week as data showed consumer prices decelerated in
Traders also scaled back their bets on rising inflation on a
drop in oil prices.
The government said the Consumer Price Index, its broadest
inflation gauge, rose 0.2 percent last month, bringing its
year-over-year increase to 1.7 percent.
In October, the CPI grew 0.4 percent for a year-over-year
rise of 1.6 percent.
The 10-year inflation breakeven rate, or the yield
difference between 10-year Treasury Inflation Protected
Securities and regular 10-year Treasury notes
, fell to 1.92 percent, which was the lowest since
Dec. 5, shortly after the release of the November CPI report.
The 10-year breakeven rate was last 1.94
percent, down more than three basis points from late on
Wednesday, Reuters and Tradeweb data showed.
The five-year breakeven rate fell earlier on
Thursday to 1.76 percent, its lowest since Dec. 5, before
retracing to 1.78 percent, down three basis points on the day.
(Reporting by Richard Leong; Editing by Chizu Nomiyama and Lisa