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US Dollar Index and Treasury Yields Are Strong on August 31

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US Dollar Index

The US Dollar Index started this week on a weaker note after losing strength last week. However, the US Dollar Index regained strength on Tuesday and Wednesday amid the improved market sentiment and risk appetite. On Thursday, the US Dollar Index started the day on a stronger note and traded above 93 in the early hours.

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Market sentiment

Despite starting this week with an improved market sentiment, the sentiment on the US Dollar Index improved as the week progressed. Initially, North Korean tensions and concerns about damage from Hurricane Harvey surfaced the market and weighed on the US dollar. The stronger yen and euro also weighed on the US Dollar Index. However, the US Dollar Index regained strength as North Korean tensions subsided. The upbeat second revision to the US second quarter GDP also supported the US dollar and helped it rebounded from two and half year low levels.

At 7:00 AM EST today, the US Dollar Index is trading at 93.16—a gain of 0.29%.

US Treasury yields

Continuing the weakness from last week, US Treasury yields had a poor start this week and fell on Monday. However, the Treasury yields regained strength as the week progressed amid the improved global sentiment and risk appetite. On Thursday, the yields started the day higher and maintained the strength in the early hours. The market is looking forward to the release of US economic data today. The data include the core PCE price index, initial jobless claims, personal spending, and pending home sales data.

Movement in Treasury yields 

 The movement in Treasury yields at 7:05 AM EST on August 31 was:

  • The ten-year Treasury yield was trading at 2.150—a gain of ~0.24%.
  • The 30-year Treasury yield was trading at 2.753—a gain of ~0.18%.
  • The five-year Treasury yield was trading at 1.733—a gain of ~0.48%.
  • The two-year Treasury yield was trading at 1.338—a gain of ~0.34%.

The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.03%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) rose 0.09% and 0.16%, respectively, on August 30.

In the next part, we’ll discuss how commodities are performing in the early hours on August 31.

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