TREASURIES-U.S. TIPS breakeven rates pare losses after auction
NEW YORK Dec 20 (Reuters) - The breakeven rates on U.S. Treasury Inflation Protected Securities pared their earlier losses on Thursday after solid demand at a $14 billion auction of five-year TIPS.
The five-year breakeven rate, or the yield gap between five-year TIPS and regular five-year Treasuries , was 2.11 percentage points, 1 basis point higher than late on Wednesday.
Shortly before the auction, this gauge on traders' five-year inflation expectations was about 2.09 percent.