Inflation expectations as measured by rates on Treasury inflation-protected securities jumped on Thursday to their highest level in more than a decade. As of 11 a.m. Eastern time, the 30-year TIPS rate was at 1.985%, up from Wednesday’s closing level of 1.862% and now at its highest since early March 2011, according to Tradeweb. The 10-year TIPS rate was at 1.804%, up from 1.72% at 3 p.m. Eastern time on Wednesday and now the highest since mid-August 2009. The moves came as investors sold off Treasurys, pushing the 30-year Treasury rate further into an almost nine-month high, as they revised their expectations for Friday’s nonfarm payrolls report for July in reaction to a stronger-than-expected private-sector employment number earlier this week.
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