US inflation expectations keep rebound from 11-week low

US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, printed a two-day recovery from the lowest levels since September-end with Thursday’s reading of 2.44%, per the data source Reuters.

In doing so, the inflation gauge challenges the last week’s pullback while supporting the US Federal Reserve’s (Fed) recent hawkish move of faster tapering and hints for three rate hikes during 2022.

Read: Fed Quick Analysis: Hawks shift to three hikes in 2022, King dollar to end 2021 on top

It should be noted, however, that the Omicron fears have recently weighed on the market’s mood and challenged the risk barometers like AUD/USD and gold prices amid a light calendar day.

That said, the US 10-year Treasury yields also print mild gains around 1.42% to consolidate the weekly loss, which in turn challenges equity bulls and underpins the US Dollar Index (DXY) to lick their wounds.

Read: AUD/USD consolidates recent gains below 0.7200 as yields stabilize on coronavirus fears