US inflation expectations print four-day rebound from early October lows

US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, rise to the highest level in December during the four-day run-up by the end of Wednesday’s North American session, per the data source Reuters.

In doing so, the inflation gauge bounced off the nine-week low to print 2.52% at the latest.

The steady recovery in the inflation expectations underpins the US Treasury yields ahead of the Consumer Price Index (CPI) data and weighs on the market sentiment.

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That said, the US 10-year Treasury yields rise 1.4 basis points (bps) to 1.52%, up for the fourth consecutive day, whereas S&P 500 Futures print mild losses at the latest.

Reuters' latest poll on the Fed rate hike confirms the bullish bias while expecting sooner action.

Read: Fed to lift rates in Q3 2022, but risk it comes sooner – Reuters Poll