NEW YORK, May 24 (Reuters) - The U.S. bond market’s gauges on investors’ inflation expectations fell on Thursday as Treasury yields retreated from their multi-year peaks that were tied to worries about rising inflation and federal borrowing.
Renewed concerns about U.S.-China trade tension, together with jitters about Italy and Turkey, spurred safe-haven demand for lower-risk U.S. government debt this week, driving down their yields, analysts said.
At 9:07 a.m. (1307 GMT), the 10-year inflation breakeven rate, or the yield gap between 10-year Treasury Inflation Protected Securities (TIPS) and regular 10-year Treasury notes, was 2.14 percent, which was the lowest in more than five weeks. It was nearly 2 basis points lower than late on Wednesday.
A week ago, the 10-year TIPS breakeven rate hit 2.21 percent, which was the highest level since August 2014, Reuters and Tradeweb data showed.
Last Friday, the yield on benchmark 10-year Treasury notes rose to 2.128 percent, the highest since July 2011. (Reporting by Richard Leong Editing by Chizu Nomiyama)