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US Dollar Index and Treasury Yields Are Strong on October 25

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Oct. 25 2017, Updated 7:42 a.m. ET

US Dollar Index

After regaining strength last week, the US dollar started this week on a stronger note and rose in the first two trading days of the week. The US Dollar Index is stable in the early hours on Wednesday.

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Market sentiment

The market sentiment has been strong since last week due to interest rate hike expectations and increased optimism about tax reform plans. The expectations of strong third quarter corporate earnings also strengthened the market. The US dollar moved higher on Tuesday amid the release of strong US manufacturing and services purchasing managers’ index data. On Wednesday, the market is looking forward to the release of core durable goods orders data and new home sales data that are scheduled to release today.

At 5:55 AM EST on October 25, 2017, the US Dollar Index was trading at 93.91—a rise of 0.15%.

US Treasury yields

US Treasury yields regained strength last week but started this week on a weaker note. The yields regained strength as the week progressed and rose to the highest levels since March in the early hours on Wednesday. The market is waiting for President Trump’s choice of a new Fed Chair. Expectations of a more hawkish Fed are pushing the yields higher.

Movement in Treasury yields

Below are the movements in Treasury yields as of 5:55 AM EST on October 25:

  • The ten-year Treasury yield was trading at 2.448—a rise of ~1.8%.
  • The 30-year Treasury yield was trading at 2.958—a rise of ~1.2%.
  • The five-year Treasury yield was trading at 2.068—a rise of ~2%.
  • The two-year Treasury yield was trading at 1.611—a rise of ~2.1%.

The iShares 20+ Year Treasury Bond (TLT) fell 0.62%. The ProShares UltraPro Short 20+ Year Treasury (TTT) rose 1.9% and the ProShares UltraShort 20+ Year Treasury (TBT) fell 1.3% on October 24.

In the next part of this series, we’ll discuss how commodities performed in the early hours on October 25.

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