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The US inflation expectations are rising, lifting treasury yields on expectations for more significant fiscal stimulus alongside a continued monetary stimulus. 

The US 10-year breakeven inflation rate, which represents how the market foresees long-term price pressures, rose to 2.06% on Wednesday, the highest level since November 2018, having bottomed near 0.5% in March 2020, according to data provided by the St. Louis Federal Reserve. Markets collapsed in March on fears of a coronavirus-induced recession. 

The 10-year US treasury yield has risen above 1% for the first time since March 2020. 

The US Democrats swept Georgia elections held on Tuesday, gaining control of the Senate. With the party now having control over what legislation will pass through Congress, President-elect Joe Biden would be able to deliver a bigger fiscal stimulus package. 

An uptick in inflation expectations could bode well for scare store of value assets such as gold. The yellow metal is currently trading near $1,920 per ounce.