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



US Dollar Index

The US Dollar Index broke the three-week gaining streak last week amid the weak market sentiment. This week, the US Dollar Index started on a mixed note and lost strength as the week progressed. It opened Wednesday on a weaker note and traded at three-week low price levels.

Market sentiment

Uncertainty in the markets amid the timing of US tax reform plans dented the sentiment and weighed on the US Dollar Index. The US Dollar Index fell despite the release of October’s stronger-than-expected PPI (producer price index). On the other hand, the euro rebounded amid Germany’s stronger-than-expected economic data. The market is looking forward to the release of business inventories, retail sales, and consumer price index data.

At 3:50 AM EST on November 15, 2017, the US Dollar Index was trading at 93.55—a fall of 0.3%.

US Treasury yields

US Treasury yields started Tuesday on a stronger note amid October’s better-than-expected US PPI data. However, Treasury yields reversed their direction as the day progressed. The two-year bond yield rose to fresh nine-year high levels on Tuesday. The yield curve flattened for the second consecutive trading day.

Movement in Treasury yields

Below are the movements in Treasury yields as of 4:00 AM EST on November 15.

  • The ten-year Treasury yield was trading at 2.338—a fall of ~1.8%.
  • The 30-year Treasury yield was trading at 2.796—a fall of ~1.5%.
  • The five-year Treasury yield was trading at 2.023—a fall of ~2.0%.
  • The two-year Treasury yield was trading at 1.667—a fall of ~1.4%.

The iShares 20+ Year Treasury Bond (TLT) rose 0.68%. The ProShares UltraPro Short 20+ Year Treasury (TTT) fell 1.9% and the ProShares UltraShort 20+ Year Treasury (TBT) fell 1.2% on November 14.

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