(Bloomberg) -- U.S. bond market expectations for inflation surged after consumer prices in October rose at the fastest pace since 1990, adding to growing views that inflation will prove more sticky than the Federal Reserve expects.

The so-called five-year breakeven rate on Treasury inflation protected securities -- or the difference between those yields and the ones on typical Treasuries -- jumped as much as almost 10 basis points to 3.08%, a record high. The spread between 2- and 10-year yields collapsed to as low as about 98 basis points as shorter-term rates rose faster, with the specter of Fed rate hikes moving closer into view. Money market traders moved forward expectations for the Fed’s first rate increase to July from September.

“Inflation is broadening out,” Greg McBride, chief financial analyst at Bankrate.com, said in a note. “Consumers are feeling it in the pocketbook at the gas pump, grocery store and tenants in many parts of the country.”

The consumer price index increased 6.2% last month from a year earlier, according to Labor Department data released Wednesday. It jumped 0.9% from September, the largest advance in four months. Both increases exceeded all estimates in a Bloomberg survey of economists.

The 10-year breakeven rate on TIPS rose as much as 5 basis points to 2.69%. TIPS are tied to consumer prices, which have historically exceeded the inflation the Fed targets -- the personal consumption expenditure index -- by about 40 basis points.

(Adds details on yield curve and updates rates throughout.)

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