US Dollar Index
After falling last week, the US Dollar Index regained strength and started this week on a stronger note. On Tuesday, the US Dollar Index started the day with strength and traded above the opening prices in the early hours.
The market sentiment was weak until last week due to damage from Hurricane Harvey, warnings about Hurricane Irma, and concerns about a possible missile launch test by North Korea. However, the market sentiment improved as Hurricane Irma weakened and North Korea didn’t perform any missile test launches over the weekend. The US Dollar Index recovered from 33-month low levels reached last week and added upward momentum. The market is looking forward to the release of July’s JOLTs Job Openings data at 10:00 AM EST today.
At 6:10 AM EST today, the US Dollar Index is trading at 91.86—a fall of 0.02%.
US Treasury yields
After falling for three consecutive trading weeks, US Treasury yields regained strength this week. The improved market sentiment and risk appetite took the shine away from safe-haven assets like bonds and supported Treasury yields. Treasury yields that move opposite to bonds are strong in the early hours on Tuesday. The market is looking forward for the ten-year note auction at 1:00 PM EST today.
Movement in Treasury yields
The movement in Treasury yields at 6:25 AM EST on September 12 was:
- The ten-year Treasury yield was trading at 2.152—a gain of ~1.3%.
- The 30-year Treasury yield was trading at 2.758— a gain of ~0.68%.
- The five-year Treasury yield was trading at 1.727—a gain of ~1.5%.
- The two-year Treasury yield was trading at 1.327—a gain of ~0.58%.
The iShares 20+ Year Treasury Bond ETF (TLT) fell 1.2%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) and the ProShares UltraShort 20+ Year Treasury ETF (TBT) rose 3.7% and 2.4%, respectively, on September 11.
In the next part, we’ll discuss how commodities are performing in the early hours on September 12.