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US Dollar Index and Treasury Yields Started This Week Strong

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Oct. 23 2017, Updated 8:37 a.m. ET

US Dollar Index

The US Dollar Index regained strength last week by rising in three out of five trading days. This week, the US Dollar Index started on a stronger note. In the early hours on Monday, the US Dollar Index was strong and trading above the opening prices.

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Market sentiment

The market sentiment is strong amid increased optimism about US markets’ stability. There are expectations of one more interest rate hike by the end of 2017. The Senate approved the budget, which increased the confidence about executing the tax reform plans proposed by the Trump Administration. The market is waiting for the release of October’s US manufacturing and services purchasing managers’ index at 9:45 AM EST on October 24.

At 7:05 AM EST on October 20, 2017, the US Dollar Index was trading at 93.96—a rise of 0.28%.

US Treasury yields

US Treasury yields started this week on a stronger note. In the early hours, the ten-year bond yield is trading near 2.4% amid increased optimism about the tax reform plans. The improved market sentiment amid strong third-quarter earnings and interest rate hike expectations are pushing the yields higher.

Movement in Treasury yields

Below are the movements in Treasury yields as of 7:10 AM EST on October 20:

  • The ten-year Treasury yield was trading at 2.394—a rise of ~0.53%.
  • The 30-year Treasury yield was trading at 2.907—a rise of ~0.43%.
  • The five-year Treasury yield was trading at 2.029—a rise of ~0.56%.
  • The two-year Treasury yield was trading at 1.585—a rise of ~0.56%.

The iShares 20+ Year Treasury Bond (TLT) fell 1.1%. The ProShares UltraPro Short 20+ Year Treasury (TTT) rose 3.5% and the ProShares UltraShort 20+ Year Treasury (TBT) fell 2.1% on October 20.

In the next part of this series, we’ll discuss how commodities performed in the early hours on October 23.

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