US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, rose to the highest since November 24 while flashing a 2.60% level by the end of Monday’s North American session, per the FRED website.
Given the firmer inflation expectations backing fears of the Fed’s early rate hike, the US Treasury yields remain firmer and help the US dollar at the latest.
That said, US 10-year Treasury yields rallied the most in three months the previous day, firmer around 1.62% at the latest.
In addition to the strong inflation expectations, rapidly spreading coronavirus also weighs on the market sentiment and propels the US Treasury yields, as well as the US dollar.
With the firmer US dollar, the commodities remain on the back foot, mainly the gold prices ahead of today’s US ISM Manufacturing PMI.
Read: Gold Price Forecast: XAU/USD sellers attack $1,800 as coronavirus fuels yields, US ISM PMI eyed
This article was originally published by Fxstreet.com.Read the original article here.
