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US Dollar Index and Treasury Yields Were Weak on September 14

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Sep. 15 2017, Published 8:33 a.m. ET

US Dollar Index

The US Dollar Index fell to multiyear low price levels last week. The index regained strength this week and traded with strength in the first three trading days. In the early hours on September 14, the US Dollar Index was trading with weakness below the opening prices.

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Market sentiment

The market’s sentiment on the US dollar has improved substantially this week. Geopolitical concerns cooled down at the beginning of the week. The US Dollar Index rose on Wednesday after the PPI (producer price index) data were released. According to the U.S. Bureau of Labor Statistics, the US core PPI recorded 0.1% in August, which is a rebound from a 0.1% fall in July. However, the risk appetite was lower in the early hours on Thursday. The market was looking forward to inflation data that were scheduled to release at 8:30 AM EST on September 14.

At 6:40 AM EST on September 14, the US Dollar Index was trading at 92.33—a fall of 0.2%.

US Treasury yields

After rising for five consecutive trading days, US Treasury yields were weak in the early hours on Thursday. The market’s risk appetite was lower in the early hours. The market was waiting for inflation data to get clues about the timing of the next interest rate hike. The Fed is expected to announce its plans to reduce the balance sheet on September 20.

Movement in Treasury yields 

The movement in Treasury yields at 6:45 AM EST on September 14 was:

  • The ten-year Treasury yield was trading at 2.192—a fall of ~0.15%.
  • The 30-year Treasury yield was trading at 2.794—a fall of ~0.03%.
  • The five-year Treasury yield was trading at 1.770—a fall of ~0.2%.
  • The two-year Treasury yield was trading at 1.351—a fall of ~0.27%.

The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.39%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) rose 0.99% and 0.67%, respectively, on September 13.

In the next part, we’ll discuss how commodities performed in the early hours on September 14.

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