US 10-year inflation expectations refresh two-week high

US inflation expectations as per the 10-year breakeven inflation rates from the St. Louis Federal Reserve (FRED) data, justify the recently firmer US Treasury bond yields as the same rose to the fresh high since December 12 by the end of Wednesday’s North American session. That said, the key inflation precursor jumped to 2.28% versus 2.26% marked the previous day.

On the other hand, the 5-year counterpart of the said inflation data portrays inaction at around 2.33% level at the latest.

It’s worth noting that the fears emanating from China unlock seemed to have propelled the latest inflation woes and underpinned the US Treasury yields, as well as the US Dollar.

That said, US 10-year Treasury yields rose to the highest levels since November 14 while flashing 3.88% by the end of Wednesday’s North American session. In doing so, the key US bond coupon marked the biggest one-day rise since October 19 on Wednesday. While tracing the firmer Treasury bond yields, the US Dollar Index (DXY) rose for the second consecutive day to 104.50 at the latest.

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