US inflation expectations remain pressured below 2.50% to test Fed hawks
|US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, printed a two-day fall with Friday’s reading of 2.44%, per the data source Reuters.
In doing so, the inflation gauge stays depressed around the monthly low, easing pressure off the US Federal Reserve (Fed) officials to alter the monetary policy amid the Omicron woes.
It’s worth noting that the US Consumer Price Index (CPI) flashed a fresh 39-year high but matched market forecasts of 6.8% YoY for November.
An absence of surprise from the US inflation number triggered a relief rally the previous day, helping equities and commodities. However, cautious sentiment underpins the US Treasury yields as the key week comprising major central bank events and important data begins.
That said, the US 10-year Treasury yields rise one basis point (bps) to 1.50%, snapping two-day downside, whereas S&P 500 Futures print mild gains at the latest.
Read: US Treasury yields consolidate recent losses as traders await Fed signals
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.