US inflation expectations track higher yields to refresh monthly top above 2.50%
|US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, refreshed monthly high to 2.53% by the end of Thursday’s North American session, per the FRED website.
The firmer inflation expectations keep fears of the Fed’s early rate hike on the table, which also takes clues from the recently higher US Treasury yields.
US 10-year Treasury yields rallied the most in three weeks the previous day, firmer around 1.55% at the latest, after an auction of the US seven-yaer Treasury bond showed disappointing demand for the government securities during the holiday period. “The seven-year notes sold at a high yield of 1.48%, around two basis points higher than where they had traded before the auction,” said Reuters.
It’s worth noting that the strong yields failed to propel DXY, pressured around a monthly low near 95.90.
Read: US Dollar Index stays pressured around monthly low under 96.00 amid firmer yields, covid woes
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.