NEW YORK Dec 22 The U.S. bond market's gauges
on inflation expectations rose to session highs on Thursday
following robust investor demand for $14 billion worth of
five-year Treasury Inflation Protected Securities supply.
The sum of direct and indirect bidder purchases, which is
seen as a gauge of investor appetite, accounted for about 81
percent of the supply offered, which was a record amount,
Treasury data showed.
The ratio of bids to the amount offered was 2.68, which was
the strongest since a five-year TIPS auction in April 2014.
The yield at the latest five-year TIPS sale was 0.120
percent, which was the highest yield at a five-year TIPS auction
in a year.
On the open market, the five-year inflation breakeven rate
, or the yield difference between five-year TIPS
and regular five-year Treasury notes
, was 1.86 percent, up 5 basis points from late on
Wednesday, according to Tradeweb.
The 10-year breakeven rate was last at 1.97
percent, up 4 basis points from late on Wednesday, Tradeweb data
(Reporting by Richard Leong; Editing by Chizu Nomiyama)