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US Dollar Index and Treasury Yields Are Strong

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US Dollar Index

After regaining stability last week, the US Dollar Index rose this week. The US Dollar Index rose in the first four trading days this week and opened higher on Friday. In the early hours on December 8, the US Dollar Index is trading with strength above the opening prices.

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Market sentiment

Confidence about the progress in US tax reform plans improved the market sentiment this week and supported the US Dollar Index. The release of stronger-than-expected economic data on Thursday, like initial jobless claims and consumer credit data, pushed the US Dollar Index to two-week high price levels. On Friday, the US Dollar Index is strong ahead of the non-farm payrolls and unemployment data. The data will be released at 8:30 AM EST.

At 6:10 AM EST today, the US Dollar Index was trading at 93.99—a gain of 0.21%.

US Treasury yields

After trading with weak sentiment and falling for the first three trading days this week, US Treasury yields regained strength on Thursday. The improved market sentiment along with strong economic data supported Treasury yields. The market is awaiting the release of unemployment data at 8:30 AM EST today.

Below are the movements in Treasury yields as of 6:15 AM EST on December 8.

  • The ten-year Treasury yield was trading at 2.387—a gain of ~0.45%.
  • The 30-year Treasury yield was trading at 2.779—a gain of ~0.15%.
  • The five-year Treasury yield was trading at 2.153—a gain of ~0.34%.
  • The two-year Treasury yield was trading at 1.815—a gain of ~0.49%.

The iShares 20+ Year Treasury Bond (TLT) fell 0.78%. The ProShares UltraPro Short 20+ Year Treasury (TTT) rose 0.45% and the ProShares UltraShort 20+ Year Treasury (TBT) rose 1.5% on December 7.

In the next part of this series, we’ll discuss how commodities performed in the early hours on December 8.

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