US inflation expectations drop to five-week low ahead of CPI release
|Markets remain dicey during early Tuesday as traders await the key US Consumer Price Index (CPI) data for February, as well as taking a breather after the volatile start of the week due to the Silicon Valley Bank (SVB) and Signature Bank’s rescue.
While the recent fears of financial market distress in the US weighed on the Treasury bond yields and the US Dollar, the sudden shift in the hawkish Federal Reserve (Fed) bets and the US inflation expectations keep the greenback bears hopeful.
That said, the US inflation expectations per the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve (FRED) dropped to the lowest levels since early February. In doing so, the inflation precursors dropped for the consecutive fifth and sixth days for the five-year and 10-year gauges respectively.
To note the figures, the 10-year inflation expectations per the aforementioned measure plummeted to 2.24% by the end of Monday’s North American trading session, after refreshing a four-month high of 2.52% earlier in March.
On the same line, the five-year US inflation expectations slumped to the lowest levels since February 02, around 2.26% as per the latest readings.
Also read: US Dollar Index: DXY licks SVB-inflicted wounds as Fed bets dwindle, US inflation, yields in focus
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.