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US Dollar and US Treasuries Are Slightly Weaker Early on May 12

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US dollar

After losing momentum on Thursday, the US dollar is slightly weaker in the early hours on May 12. Concerns about political uncertainty in the US are weighing on the US dollar.

The US dollar started the week on a positive note and rose to three-week high price levels. However, the sentiment was dented by the dismissal of FBI Director James Comey. He was fired by President Trump for mishandling the investigation into Hillary Clinton’s private email server. Poor quarterly results from top stocks in the retail sector increased the focus on US retail sales data for April. The data will be released at 8:30 AM EST today.

The market is also waiting for inflation data scheduled to release today. At 6:15 AM EST on May 12, the US Dollar Index was trading at 99.61—a fall of ~0.02%

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US Treasury yields

After breaking the three-day gaining streak and losing momentum on Thursday, US Treasury yields are weaker in the early hours. With new Treasury bonds worth $189 billion scheduled to auction this week, the increased supply of bonds is expected to weigh on bond prices. However, weaker-than-expected demand for Treasury bonds improved bond prices. US Treasury yields, which move opposite to bond prices, lost strength. The market is looking forward to inflation data and FOMC member Patrick Harker’s speech scheduled for today.

At 6:20 AM EST on May 12:

  • The ten-year Treasury yield was trading at 2.373—a fall of ~1.1%.
  • The 30-year Treasury yield was trading at 3.014—a fall of ~0.81%.
  • The five-year Treasury yield was trading at 1.902—a fall of ~1.3%.
  • The two-year Treasury yield was trading at 1.331—a fall of ~1.2%.

The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) fell 0.07%. The iShares 20+ Year Treasury Bond ETF (TLT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) remained unchanged on May 11.

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