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



US Dollar Index

After falling for three weeks, the US Dollar Index started to regain strength this week but pulled back on Thursday. After it pulled back, the US Dollar Index opened lower on Friday and traded with weakness below opening prices in the early hours.

Market sentiment

The market sentiment has been positive since the beginning of the week amid expectations of tax reform approval. However, the sentiment was dented on Thursday after the tax reform vote was delayed until Friday. The US Dollar Index open lower on Friday and added weakness. The market is looking forward to the release of November’s US manufacturing PMI data on Friday.

At 6:35 AM EST today, the US Dollar Index is trading at 92.99—a fall of 0.05%.

US Treasury yields

US Treasury yields regained stability last week and moved higher this week. US Treasury yields rose on Thursday amid reports about increased inflation and lower jobless claims. However, yields pulled back on Friday amid concerns about the vote on tax reforms.

Below are the movements in Treasury yields as of 6:40 AM EST on December 1.

  • The ten-year Treasury yield was trading at 2.374—a fall of ~1.7%.
  • The 30-year Treasury yield was trading at 2.78—a fall of ~1.8%.
  • The five-year Treasury yield was trading at 2.113—a fall of ~1.5%.
  • The two-year Treasury yield was trading at 1.774—a fall of ~0.89%.

The iShares 20+ Year Treasury Bond (TLT) fell 0.33%. The ProShares UltraPro Short 20+ Year Treasury (TTT) rose 0.94% and the ProShares UltraShort 20+ Year Treasury (TBT) rose 0.69% on November 30.

In the next part of this series, we’ll discuss how commodities performed in the early hours on December 1.

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