US 10-year inflation expectations refresh monthly high

US inflation expectations as per the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve (FRED) data struggle to defend the US Dollar buyers as the greenback remains pressured despite early signals of high inflation justify the hawkish Fedspeak.

That said, the 10-year inflation expectations per the aforementioned approach refreshed the monthly high to 2.28% on Monday, up for the third consecutive day. On the same line, the five-year counterpart also rose for the third day in a row while posting the 2.28% figure as well.

It’s worth noting that the Fed policymakers have supported the higher rates during their last speeches ahead of the pre-Federal Open Market Committee (FOMC) blackout period. However, markets brace for a softer Fed rate increase in February and an eventual policy pivot afterward.

Amid these plays, the US Treasury bond yields retreat while the S&P 500 Futures struggle for clear directions amid holidays in China and a cautious mood ahead of the first readings of January’s S&P Global PMIs for the US.

Also read: US Dollar Index struggles to defend 102.00 ahead of US PMI, GDP data