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US Dollar Index and Treasury Yields Fall Early on August 29

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Aug. 29 2017, Updated 9:19 a.m. ET

US Dollar Index

After falling last week, the US Dollar Index continued to fall on Monday. The stronger euro and political tension in the US weighed on the US Dollar Index on August 28. On Tuesday, it opened with weakness and traded at the lowest levels since January 2015.

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Market sentiment

For the US Dollar Index, the market sentiment is weak due to geopolitical tension and the strong euro and yen. Hurricane Harvey raised concerns about the US economy and weighed on the US dollar. North Korea’s missile launch over Japan also triggered geopolitical tension and dragged the dollar to multi-month lows in the early hours on Tuesday. Doubts about the possibility of one more interest rate hike in 2017 also weighed on the US Dollar Index.

At 6:20 AM EST today, the US Dollar Index is trading at 91.78—a fall of 0.46%.

US Treasury yields

After falling last week, US Treasury yields started this week on a weaker note by falling on Monday. There was an increased weakness in US Treasury yields in the early hours on Tuesday. Geopolitical tension amid North Korea’s missile launch increased the demand for safe-haven assets and pushed the bonds higher. As a result, the yields fell because they move opposite to the bonds’ movement. The market is looking forward to the release of CB Consumer Confidence data scheduled to release at 10:00 AM EST.

Movement in Treasury yields 

The movement in Treasury yields at 6:25 AM EST on August 29 was:

  • The ten-year Treasury yield was trading at 2.114—a fall of ~2.1%.
  • The 30-year Treasury yield was trading at 2.716— a fall of ~1.3%.
  • The five-year Treasury yield was trading at 1.694—a fall of ~2.8%.
  • The two-year Treasury yield was trading at 1.314—a fall of ~1.5%.

The iShares 20+ Year Treasury Bond ETF (TLT) rose 0.4%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) fell 0.06% and 0.2%, respectively, on August 28.

In the next part, we’ll discuss how commodities are performing in the early hours on August 29.

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