U.S. TIPS breakeven rates stay lower after U.S. GDP data
NEW YORK, May 27 (Reuters) - The U.S (Other OTC: UBGXF - news) . bond market's gauges on investors' inflation expectations held to their earlier decline on Friday as the government's modest upgrade of its first-quarter U.S. growth reading did not alter the market's outlook on inflation staying tame.
The yield differences between Treasury Inflation Protected Securities and regular Treasuries, or inflation breakeven rates, are seen as a proxy of investors' inflation expectations. The 10-year TIPS breakeven rate slipped 1 basis point from late Thursday to 1.61 percent, according to Tradeweb data. (Reporting by Richard Leong; Editing by Chizu Nomiyama)