Inflation expectations from the TIPS market remain on the higher end of readings seen during the last two years.

The Barclays 5-year/5-year forward breakeven inflation rate is currently at 2.86 percent, hardly changed from a week ago. But it remains about 40 bps higher than the average daily rate seen between January and August 2012, when expectations consistently fluctuated between 2.3 percent and 2.6 percent.

(Note: The breakeven inflation rate is a measure of expected inflation derived from "nominal" Treasury securities and their "real" counterparts—inflation-protected TIPS securities.)

Barclays 5-year/5-year forward breakeven inflation rate, percent