Markets remain dicey during early Tuesday as traders await the key US Consumer Price Index (CPI) data for February, as well as taking a breather after the volatile start of the week due to the Silicon Valley Bank (SVB) and Signature Bank’s rescue.

While the recent fears of financial market distress in the US weighed on the Treasury bond yields and the US Dollar, the sudden shift in the hawkish Federal Reserve (Fed) bets and the US inflation expectations keep the greenback bears hopeful.

That said, the US inflation expectations per the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve (FRED) dropped to the lowest levels since early February. In doing so, the inflation precursors dropped for the consecutive fifth and sixth days for the five-year and 10-year gauges respectively.

To note the figures, the 10-year inflation expectations per the aforementioned measure plummeted to 2.24% by the end of Monday’s North American trading session, after refreshing a four-month high of 2.52% earlier in March.

On the same line, the five-year US inflation expectations slumped to the lowest levels since February 02, around 2.26% as per the latest readings.

Also read: US Dollar Index: DXY licks SVB-inflicted wounds as Fed bets dwindle, US inflation, yields in focus