US Dollar Index and Treasury Yields Are Strong in the Early Hours



US Dollar Index

After gaining for three consecutive trading weeks, the US Dollar Index started this week on a weaker note by pulling back on Monday. The US Dollar Index started Tuesday on a stronger note amid the improved market sentiment. It traded with strength at elevated levels in the early hours.

Market sentiment

The US Dollar Index pulled back on Monday amid uncertainty about the revision of the US tax reform plan and the FOMC’s composition. On Tuesday, the US Dollar Index regained strength and recovered all of the losses incurred on Monday. Along with the improved sentiment, weakness in the euro and the pound against the dollar also supported the US Dollar Index. The market is looking forward to Fed Chair Janet Yellen’s speech at 2:30 PM EST today.

At 5:00 AM EST on November 7, 2017, the US Dollar Index was trading at 95.05—a gain of 0.4%.

US Treasury yields

After the strong performance for two trading weeks, US Treasury yields started this week on a weaker note. On Tuesday, the increased risk appetite in the market is supporting the Treasury yields in the early hours.

Movement in Treasury yields

Below are the movements in Treasury yields as of 5:00 AM EST on November 7.

  • The ten-year Treasury yield was trading at 2.331—a rise of ~0.46%.
  • The 30-year Treasury yield was trading at 2.804—a rise of ~0.27%.
  • The five-year Treasury yield was trading at 1.997—a rise of ~0.48%.
  • The two-year Treasury yield was trading at 1.629—a rise of ~0.49%.

The iShares 20+ Year Treasury Bond (TLT) rose 0.37%. The ProShares UltraPro Short 20+ Year Treasury (TTT) fell 1.1% and the ProShares UltraShort 20+ Year Treasury (TBT) fell 0.78% on November 6.

In the next part of this series, we’ll discuss how commodities performed in the early hours on November 7.

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