US inflation expectations rebound from yearly low but 2-year, 10-year yield inversion stays
|US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, bounced off the lowest levels since September 2021 by the end of Thursday’s North American session. That said, the inflation gauge recently flashed the 2.33% mark, reversing from the previous day’s multi-month low of 2.29%.
The recently improved inflation expectations fail to defy the recession fears signaled by the inversion of the 2-year and the 10-year Treasury yield curve. That said, the US 2-year Treasury yields are higher around 3.02% while the 10-year bond coupon seesaws near 3.0% at the latest.
The upbeat prints of inflation expectations appear to weigh on the market sentiment and can help the US dollar to remain firm.
It’s worth noting that the US Dollar Index (DXY) retreated from the 20-year high the previous day, even if the daily loss was almost negligible.
Also read: Nonfarm Payrolls Preview: Three dollar-positive scenarios, only one negative one
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.