Market expectations of inflation on Wednesday were headed higher on renewed hopes that Congress could pass a COVID-19 stimulus package, after yesterday reaching 18-month highs.
The 5-year, 10-year and 30-year breakeven inflation rates all closed on Tuesday at their highest since May 2019 and moved higher in trading on Wednesday. The 5-year breakeven was last at 1.756%, the 10-year at 1.850% and the 30-year at 1.972%.
Treasury Secretary Steven Mnuchin said President Donald Trump supported a coronavirus relief proposal put forth by Republican Majority Leader Mitch McConnell after he rejected on Tuesday a $908 billion bipartisan package. It is unclear whether the measure would have the votes to pass the Democratic-controlled House of Representatives.
(Reporting by Kate Duguid, Editing by Franklin Paul)