TREASURIES-TIPS breakeven rates firm after auction

NEW YORK Thu Jan 24, 2013 1:15pm EST

NEW YORK Jan 24 (Reuters) - The breakeven rates on U.S. Treasury Inflation-Protected Securities were steady to higher on Thursday after strong demand at a $15 billion auction of new 10-year TIPS.

TIPS breakeven rates are the differences between the yields on TIPS and regular Treasuries of comparable maturities. They are considered a proxy of investors' inflation expectations.

The 10-year TIPS breakeven rate was last at 2.55 percent, 1 basis point higher than the level shortly before the auction results were announced.