The 5-year rate on Treasury inflation-protected securities rose above 2% Thursday morning, after a batch of U.S. data showed the economy and labor market remaining strong despite the Federal Reserve’s series of rate hikes. The 5-year TIPS rate was 2.007% as of 10:30 a.m. New York time and on track for its highest closing level since mid-December of 2008, when it reached 2.036%, according to Tradeweb. The TIPS rate is a reflection of market expectations for inflation. Treasury yields soared on Thursday, led by a jump in 2- and 5-year rates, as investors priced in a slightly greater chance of a quarter-point September Fed rate hike, following a similar-sized move in July.
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