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US Dollar Index and Treasury Yields Were Stable

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US Dollar Index

The US Dollar Index fell for three consecutive trading weeks to the lowest levels in 13 months. The US Dollar Index was stable in the early hours on July 31.

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Market sentiment

The sentiment on the US Dollar Index is weak considering prices at 13-month high levels and increased short positions. According to reports, the short positions in the US dollar rose to the highest levels since early 2013. The weaker sentiment is primarily due to political uncertainties in the US. The U.S. Office of Special Counsel’s extended investigation into President Trump’s business transactions resurfaced political uncertainties in the market. On the other hand, the US dollar is looking forward to the release of a string of US economic data such as pending home sales, manufacturing and non-manufacturing PMI data, and job data.

US Treasury yields

US Treasury yields started to regain strength last week after falling for two consecutive trading weeks. Political concerns in the US amid weaker US economic data pushed the bonds higher and weighed on US Treasury yields. Yields move against bond movements.

Movement in Treasury yields

  • The ten-year Treasury yield closed at 2.289—a rise of ~0.08%.
  • The 30-year Treasury yield closed at 2.891— a rise of ~0.08%.
  • The five-year Treasury yield closed at 1.831—a rise of ~0.09%.
  • The two-year Treasury yield closed at 1.347—a fall of ~0.29%.

The iShares 20+ Year Treasury Bond ETF (TLT) rose 0.59%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) fell 1.3% and 1.7%, respectively, on July 28.

In the next part, we’ll discuss how commodities performed in the early hours on July 31.

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