Treasury Break-Even Rate Rises to 5-Month High on Outlook

The gap between yields on Treasury 10-year notes and inflation-linked securities widened to the most in more than five months amid speculation the Federal Reserve’s efforts to spur the economy will send costs higher.

Thirty-year bond yields reached almost a two-week high as the U.S. prepared to sell $66 billion of bonds and notes this week. The so-called 10-year break-even rate, a gauge of traders’ outlook for inflation, climbed for a fifth day after data last week showed slower job growth, boosting speculation the Fed will increase asset purchases, or quantitative easing, to support the economy. The Federal Open Market Committee meets on Sept. 12-13.