NEW YORK: A US bond market's gauge of inflation expectations rose its highest level since November on Tuesday as the oil market booked fourth straight days of gains due to a weak dollar and news of a large oil company's plan to cut its capital spending.

Until their current rebound, US oil futures fell over 50 percent from their peak last June to a near six-year low last week at $43.58 a barrel.

The steep drop in energy prices propelled a precipitous decline in inflation expectations and spurred bets the Federal Reserve might postpone possible plans to raise interest rates in 2015.

The yield gap between US five-year Treasury Inflation Protected Securities and regular five-year Treasuries notes, which measures investors' inflation outlook over a five-year period, rose to 1.51 percent in late trading, up 9.6 basis points from Monday, according to Tradeweb.

This was the highest level on five-year TIPS inflation breakeven rate since Nov. 25.

Copyright Reuters, 2015