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US Dollar and Treasury Yields Are Stable in the Early Hours

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US dollar

After trading weaker for four consecutive trading weeks, the US dollar opened this week on a stronger note. The US dollar continues to strengthen.

Recent US non-farm payrolls data and unemployment data failed to boost the US dollar. Geopolitical events moved the US dollar from lows created last week. The market digested Emmanuel Macron’s victory in France’s presidential election. With no major economic releases to impact the US dollar, it’s marching towards $99.5 in the early hours on May 9. The market is looking forward to inflation and retail sales data scheduled to release at the end of the week.

At 5:25 AM EST on May 9, the US Dollar Index was trading at 99.3—a gain of ~0.24%.

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US Treasury yields

After rising to five-week high price levels on Monday and starting the week on a stronger note, US Treasury yields are stable at elevated levels in the early hours on May 9. With Macron’s win in France’s presidential election, US Treasury bonds fell. Treasury yields, which move opposite to Treasury bonds, rose. Another factor that’s supporting Treasury yield prices is the auction of US government papers. According to reports, Treasury notes worth $189 billion will be auctioned this week. The addition of new supply would weigh on bond prices and help Treasury yields move higher. FOMC members Rosengren and Kaplan are scheduled to speak at 1:00 PM and 4:15 PM EST today.

At 5:35 AM EST on May 9:

  • The ten-year Treasury yield was trading at 2.392—a gain of ~0.69%.
  • The 30-year Treasury yield was trading at 3.029—a gain of ~0.45%.
  • The five-year Treasury yield was trading at 1.913—a gain of ~0.68%.
  • The two-year Treasury yield was trading at 1.335—a gain of ~0.34%.

The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.54%, while the ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) rose 1.7% and 1.2%, respectively, on May 8.

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