According to the most recent surveys, five-year US inflation forecasts have fallen to their lowest level. since February 2002, hovering around 2.26%.
The 10-year and 5-year breakeven inflation rates. From the St. Louis Federal Reserve (FRED) have declined to their lowest levels since early February. As a result, the precursors fell for the seventh time in a row. fifth and sixth days for the five-year and ten-year indicators, respectively.
To illustrate, 10-year inflation expectations as measured by the aforementioned metric fell to 2.24%. By the close of Monday’s North American trading day. After hitting a four-month high of 2.52% earlier in March.
Markets are still choppy after lowest US inflation, as traders await the crucial US CPI report.
Markets remain volatile on Tuesday as traders await the critical US Consumer Price Index (CPI) data for February. As well as enjoying a respite following the tumultuous start to the week due to the rescue of (SVB) and Signature Bank.
While recent worries of financial market instability in the US knocked on Treasury bond rates. And the US Dollar, the unexpected reversal in hawkish Federal Reserve (Fed) bets. And US inflation predictions keep greenback bears optimistic.
