September 1, 2015 / 12:38 PM / 2 years ago

U.S. TIPS breakevens fall on weak Chinese data

NEW YORK, Sept 1 (Reuters) - The U.S. bond market’s gauge of inflation expectations fell on Tuesday with weaker oil prices in the wake of disappointing Chinese manufacturing data that revived anxiety about a slowing global economy.

U.S. crude futures fell $2 or 4 percent to $47.18 a barrel in early trading, halving Monday’s gains tied to news of lower domestic output.

A renewed drop in energy costs has raised concerns about its dampening effect on overall U.S. price growth as Federal Reserve policy-makers have been wary that inflation has remained far below the central bank’s 2 percent target.

The yield premium on benchmark 10-year Treasuries notes over 10-year Treasury Inflation Protected Securities contracted to 1.61 percentage points, 2 basis points tighter than Monday, according to Tradeweb.

The 10-year TIPS inflation breakeven rate hit a two-week peak of 1.64 percent on Monday.

Reporting by Richard Leong; Editing by Chizu Nomiyama

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below