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US Dollar Index and US Treasury Yields Are Weaker

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US Dollar Index

The US Dollar Index fell last week to the lowest levels in ten months. In the early hours on Monday, the US Dollar Index is trading with weakness.

Last week, the US Dollar Index opened with decreased momentum but fell lower after Fed Chair Janet Yellen’s dovish comments. She said that the Fed will stick to gradually tightening monetary policy by gradually shrinking its balance sheet. The US dollar fell much lower after weaker US economic data were released at the end of last week. The consumer price index and retail sales in June didn’t meet the market’s expectations. Weak inflation data supported Yellen’s dovish comments and weighed on the US dollar.

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US Treasury yields

After falling last week, US Treasury yields are falling in the early hours on Monday. Weaker-than-expected retail sales and inflation data released on July 14 are weighing on US Treasury yields. According to data released by the Census Bureau, US retail sales fell 0.2% in June—compared to the market’s expectation of 0.1% growth.

At 7:10 AM EST on July 17:

  • The ten-year Treasury yield was trading at 2.312—a fall of ~0.29%
  • The 30-year Treasury yield was trading at 2.902—a fall of ~0.24%
  • The five-year Treasury yield was trading at 1.853— a fall of ~0.44%
  • The two-year Treasury yield was trading at 1.352—a fall of ~0.32%

The iShares 20+ Year Treasury Bond ETF (TLT) rose 0.12%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) fell 0.23% and 0.16%, respectively, on July 14.

In the next part, we’ll discuss how commodities performed in the early hours on July 17.

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