NEW YORK, May 15 (Reuters) - The U.S. bond market's gauges on inflation expectations rose on Monday, recovering a bit following Friday's steep drop, in step with higher oil futures on expectations major oil producers would extend production cuts to prop up prices.
The 10-year inflation breakeven rate, or the yield difference between 10-year Treasury Inflation Protected Securities and regular 10-year Treasury notes, was last at 1.88 percent, up 1 basis point from Friday, Tradeweb data showed.
U.S. oil futures rose 3 percent to $49.35 a barrel early Monday after Saudi Arabia and Russia agreed on the need for supply cuts to continue for another nine months until March 2018.
Crude prices hit five-month lows in earlier May on rising U.S. oil production and inventories.
Since March, falling energy costs have put broad downward pressure on the Consumer Price Index, which TIPS payments to investors are benchmarked against.
On Friday, TIPS inflation breakeven rates suffered their worst day so far this year as the CPI in April rose less than traders had expected. That raised concerns over when domestic inflation would reach the Federal Reserve's 2 percent goal. (Reporting by Richard Leong; Editing by Bernadette Baum)