After gaining some strength on Thursday, the US Dollar Index resumed its downfall on May 19. In the early hours, the US Dollar Index is weaker and trading at five-week low price levels.
The US dollar rebounded on Thursday amid the release of supporting economic data—initial jobless claims and the Philadelphia Fed Manufacturing Index. Initial jobless claims fell by 4,000, while the Philadelphia Fed Manufacturing Index rose to 38.8 and exceeded the expected reading of 19.5. However, there’s still weakness in the US dollar—reflected in its movement early on May 19. There are concerns about the successful implementation President Trump’s promised policies amid political jitters. The concerns are weighing on the market.
So far, the US Dollar Index fell three days this week. The index is on track for the worst week in ten months. At 5:40 AM EST on May 19, the US Dollar Index was trading at 97.48—a fall of ~0.41%.
US Treasury yields
US Treasury yields moved away from one-month low price levels on Thursday. They’re stable and recovering in the early hours on May 19. US Treasury bond prices rose amid political concerns. Demand increased for safe-haven assets like gold (GLD) and Treasury bonds. Due to improved sentiment in the markets, prices lost momentum. Treasury yields, which move opposite to bond prices, recovered and gained strength in the early hours. Amid political turmoil, the market is looking forward to FOMC member Bullard’s speech scheduled at 9:15 AM EST today.
At 5:45 AM EST on May 19:
- The ten-year Treasury yield was trading at 2.25—a gain of ~0.77%.
- The 30-year Treasury yield was trading at 2.910—a gain of ~0.20%.
- The five-year Treasury yield was trading at 1.799—a gain of ~1.4%.
- The two-year Treasury yield was trading at 1.295—a gain of ~2.3%.
The iShares 20+ Year Treasury Bond ETF (TLT) rose 0.11%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) fell 0.28% and 0.11%, respectively, on May 18.