NEW YORK: The US bond market's gauge on investors' inflation outlook in 10 years rose on Thursday to its strongest level since early August due to higher oil prices and data that showed faster than forecast domestic price growth in the first quarter.

The yield differences between 10-year Treasury Inflation Protected Securities and regular Treasuries, or inflation breakeven rates, are seen as a proxy on investors' 10-year inflation expectations.

The 10-year TIPS breakeven rate increased more than 3 basis points to 1.72 percent, the highest since August 3, Tradeweb data showed.

Copyright Reuters, 2016