(Adds details on latest CPI data)
NEW YORK, Sept 16 The U.S. bond market's gauge
of investors' inflation expectations rose on Friday, erasing
initial losses, as data showed domestic consumer prices in
August grew faster than forecast.
The government's Consumer Price Index, its broadest
inflation gauge, rose 0.2 percent last month, bringing its
increase over 12 months to 1.1 percent. Economists polled by
Reuters had forecast a 0.1 percent rise for August.
Higher rent and healthcare costs were behind most of the
increase last month, more than offsetting a decline in gasoline
Treasury Inflation Protected Securities, whose principal and
interest payments are adjusted against the CPI, gained on the
The yield difference between regular 10-year Treasury notes
and 10-year TIPS was last at 1.52 percent, nearly 2 basis points
wider than late on Thursday, according to Tradeweb.
The yield gap between regular five-year Treasuries and
five-year TIPS also widened nearly 2 basis points, to 1.36
percent, close to the upper end of its trading range since late
(Reporting by Richard Leong; Editing by Chizu Nomiyama and Lisa