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Pre-Market Report: Lower Global Risk Appetite on August 10

PART:
1 2 3 4 5
Part 4
Pre-Market Report: Lower Global Risk Appetite on August 10 PART 4 OF 5

US Dollar Is Stable, US Treasury Yields Are Weak on August 10

US Dollar Index

After regaining strength last week, the US Dollar Index started this week on a stable note. After a brief pull back on Wednesday, the US Dollar Index is trading with strength in the early hours on Thursday.

US Dollar Is Stable, US Treasury Yields Are Weak on August 10

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Market sentiment

The sentiment in the US dollar is strong amid increased demand for safe-haven assets and better-than-expected US economic data. Recently, better-than-expected US jobs data increased the expectations of a third interest rate hike by the end of 2017. Geopolitical tensions between the US and North Korea increased the demand for safe-haven assets like the US dollar and gold. The US dollar is stronger before the much-awaited inflation reports that are scheduled to release today. The market is also looking forward to the release of initial jobless claims data and the speech by FOMC member William Dudley.

At 6:45 AM EST today, the US Dollar Index is trading at 93.75—a gain of 0.21%.

US Treasury yields

After losing strength last week, US Treasury yields started this week on a weaker note. As the week progressed, the Treasury yields lost strength as the bonds moved higher amid increased demand for safe havens. Treasury yields move opposite to the movements in bonds.

Movement in Treasury yields at 6:50 AM EST

  • The ten-year Treasury yield closed at 2.236—a fall of ~0.27%.
  • The 30-year Treasury yield closed at 2.814— a fall of ~0.15%.
  • The five-year Treasury yield closed at 1.797—unchanged.
  • The two-year Treasury yield closed at 1.335—a fall of ~0.03%.

The iShares 20+ Year Treasury Bond ETF (TLT) rose 0.55%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) fell 1.4% and 1.0%, respectively, on August 9

In the next part, we’ll discuss how commodities are performing in the early hours on August 10.

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