limbed as much as 3.4 basis points to 2.7327%, eclipsing a high from 2008. The rate on five-year nominal securities was around one basis point lower near 0.76%.
Monday’s jump in breakeven rates comes amid a surge in prices for oil products after a cyber attack shut down the largest U.S. fuel pipeline. It adds to a longer-term uptick in inflation expectations that’s been fueled by improving prospects for growth, plans for infrastructure spending and pandemic-related stimulus measures.
Gasoline futures traded at a nearly three-year high, bolstering expected inflation accruals for Treasury securities that are tied to the consumer-price index. Shorter-dated Treasury Inflation Protected Securities also got support from the Federal Reserve’s purchase schedule, which Tuesday targets $2.425 billion of TIPS maturing in 1 to 7.5 years
