US Dollar Index
The US Dollar Index started the week on a weaker note and fell for three consecutive trading days. It regained strength later on June 14 and traded higher in the early hours on June 15.
The sentiment in the US dollar was dented after weaker-than-expected retail sales and CPI (consumer price index) data released on Wednesday. The US Dollar Index recovered most of the losses incurred on June 14 after the release of the Fed’s interest rate hike decision. The same strength was carried forward to the early hours on June 15. According to data released by the U.S. Bureau of Labor Statistics, the US CPI in May recorded growth of 0.1%, which is less than forecasted growth of 0.2%. According to the U.S. Census Bureau, US core retail sales fell 0.3% in May—compared to the market’s forecast of 0.2% growth. The market is looking forward to the release of initial jobless claims and industrial production data scheduled to release today.
At 7:25 AM EST on June 15, the US Dollar Index was trading at 97.26—a gain of 0.35%.
US Treasury yields
After showing weakness for two consecutive trading days, US Treasury yields are stable in the early hours on June 15. Long-dated Treasury yields—ten-year and 30-year Treasury yields—fell on June 14 amid the Fed’s interest rate hike. Inflation fell to 1.9% in May, which increased the demand for safe-haven assets like Treasury bonds. Since Treasury yields move opposite to bond movement, Treasury yields were weaker on June 14.
At 7:30 AM EST on June 15:
- The ten-year Treasury yield was trading at 2.153 – a rise of ~0.63%
- The 30-year Treasury yield was trading at 2.789 – a rise of ~0.23%
- The five-year Treasury yield was trading at 1.745 – a rise of ~1.16%
- The two-year Treasury yield was trading at 1.356 – a rise of ~0.93%
The iShares 20+ Year Treasury Bond ETF (TLT) rose 1.5%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) fell 4.2% and 3.1%, respectively, on June 14. In next part, we’ll discuss how commodities performed in the early hours on June 15.