Dollar eases off of two-week high ahead of jobs report
The dollar eased off of its more than two-week high hit earlier on Wednesday as U.S. economic data came in a bit softer than expected and traders awaited a key jobs report at the end of the week.
The dollar index, which measures the greenback against a basket of peer currencies, was last at 91.319 after rising as high as 91.436 earlier in the session, its highest since April 19.
Sterling traded 0.12% higher at $1.39020 a day ahead of the Bank of England meeting, where it is expected by some to announce a tapering of its bond-buying program.
TREASURIES-Yields dip as inflation expectations spike
U.S. Treasury yields drifted lower on Wednesday as inflation expectations leaped to multi-year highs even as Federal Reserve officials downplayed the risk of a big and sustained rise in inflation.
The benchmark 10-year yield was last down 1 basis point at 1.5819%, holding below a 14-month high of 1.776% reached on March 30.
The breakeven rate on 10-year Treasury Inflation-Protected Securities (TIPS) topped 2.47%, its highest level since April 2013, indicating the markets sees inflation averaging closer to 2.5% a year for the next decade.
For five-year TIPS, the breakeven inflation rate hit 2.695%, its highest since April 2011.
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