US inflation expectations refresh record top to 2.95% even as Treasury futures hint at bear’s retreat

Anil Panchal FXStreet

US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, refreshed all-time high to 2.95% by the end of Friday’s North American trading session.

In doing so, the inflation gauge extends the slow grind to the north since mid-March as the US Treasury yields rose to the highest level since May 2019.

It should be noted, however, that the latest Commodity Futures Trading Commission (CFTC) data suggests the bond bear’s retreat as US Treasury 10-year futures net shorts fall to hit the smallest levels since mid-February in the last week.

The same hints at the caution prevailing among the bond market traders and the same may help the gold prices to extend the latest upside, via anticipated pullback in the US dollar.

Read: Gold Weekly Forecast: Can XAU/USD push higher as west blocks Russia's gold transactions?

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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