NEW YORK, March 2 (Reuters) - The U.S. bond market's gauges on investors' inflation expectations reduced their decline early Monday after a measure on domestic core inflation rose in line with forecasts, soothing some worries about disinflation.

The yield spread between 10-year Treasury Inflation-Protected Securities and regular 10-year Treasuries was last 1.65 percent, 0.35 basis point tighter than late on Friday. It was about 0.60 basis point narrower before a report that showed a January 0.1 percent rise in the core personal consumption expenditure (PCE) index, the Federal Reserve's preferred inflation gauge.

(Reporting by Richard Leong; Editing by Chizu Nomiyama)