Inflation expectations in U.S. Treasury TIPS ease from âoverdoneâ level By Syndicated Content By Karen Brettell and Karen Pierog (Reuters) - Bond traders on Wednesday lowered their inflation bets as prospects for a massive stimulus package dimmed amid push back in the U.S. Congress, while increased federal borrowing could stymie another ramp up in the main market-based inflation gauge. The 10-year Treasury Inflation-Protected Securities (TIPS) breakeven inflation rate slipped below 2% for the first time since late December and was last at 1.988%. The rate spiked to 2.18%, its highest level since May 2018, following a strong TIPS auction on Jan. 21. That indicated the market expected inflation to average more than 2% a year for the next decade, above the current pace of inflation.