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US Dollar Index under Pressure, Treasury Yields Stable

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US Dollar Index

After gaining for four consecutive trading weeks, the US Dollar Index started this week on a weaker note. It fell in the first two trading days of this week and traded with weakness in the early hours of October 11.

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Market sentiment

The US dollar Index lost strength and traded near its two-week low due to dented market sentiment. Concerns over tax reform amid a war of words between President Donald Trump and Republican Senator Bob Corker affected the sentiment. The strength of the euro also weighed on the US Dollar Index. The market is looking forward to the minutes from the September FOMC (Federal Open Market Committee) meeting scheduled to be released at 2:00 PM EST today.

At 7:05 AM EST on October 10, 2017, the US Dollar Index was trading at 93.21, a fall of 0.08%.

U.S. Treasury yields

Amid increased expectations of one more interest rate hike this year and tax reforms, U.S. Treasury yields have risen for four weeks. But Treasury yields lost momentum this week and are trading with a mixed sentiment amid doubts over tax reform.

Movement in Treasury yields

Below are the movements in Treasury yields as of 7:10 AM EST on October 11:

  • The ten-year Treasury yield was trading at 2.352, a rise of ~0.29%.
  • The 30-year Treasury yield was trading at 2.886, a rise of ~0.19%.
  • The five-year Treasury yield was trading at 1.953, a rise of ~0.41%.
  • The two-year Treasury yield was trading at 1.517, a rise of ~0.56%.

The iShares 20+ Year Treasury Bond (TLT) rose 0.16%. The ProShares UltraPro Short 20+ Year Treasury (TTT) fell 0.49%, and the ProShares UltraShort 20+ Year Treasury (TBT) fell 0.33% on October 10.

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