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US Dollar Index Is Stable, US Treasury Yields Are Weaker

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US Dollar Index

The US Dollar Index lost momentum at the end of last week and closed the week almost flat. The US Dollar Index is stable in the early hours on June 19.

The US dollar lost strength last week after the Fed’s two-day interest rate meeting. Weaker-than-expected economic data included retail sales, the consumer price index, and the producer price index. The data dented the sentiment in the US dollar and pulled it lower last week. On the other hand, the Fed’s relatively hawkish tone and better-than-expected jobless claims data supported the US dollar. The market is looking forward to New York Fed President and FOMC member William Dudley’s speech in a meeting scheduled at 8:00 AM EST today. The market is looking for clues in Dudley’s speech to gauge the US dollar’s strength.

At 6:00 AM EST on June 19, the US Dollar Index was trading at 97.18—a gain of 0.01%.

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US Treasury yields

US Treasury yields fell last week despite the Fed’s plan to cut its debt holding of $4 trillion. Weaker-than-expected housing data released at the end of the week caused Treasury yields to fall. With no major economic releases scheduled for today, the market is looking forward to speeches from FOMC members Dudley and Charles Evans.

At 6:10 AM EST on June 19:

  • The ten-year Treasury yield was trading at 2.150 – a fall of ~0.34%
  • The 30-year Treasury yield was trading at 2.777 – a fall of ~0.23%
  • The five-year Treasury yield was trading at 1.740 – a fall of ~0.4%
  • The two-year Treasury yield was trading at 1.319 – unchanged

The iShares 20+ Year Treasury Bond ETF (TLT) rose 0.2%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) fell 0.87% and 0.34%, respectively, on June 16. In the next part, we’ll discuss how commodities performed in the early hours on June 19.

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