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



US Dollar Index

The US Dollar Index regained stability and moved higher last week. However, the US Dollar Index opened this week on a mixed note and traded below the opening prices in the early hours on Monday.

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Market sentiment

The sentiment in the US Dollar Index was strong last week amid optimism about progress in tax reform plans. The release of stronger-than-expected economic data like consumer credit and jobs data strengthened the US Dollar Index. Weaker-than-expected wage data dented the sentiment. It raised concerns about the pace of interest rate hikes in 2018 and weighed on the US Dollar Index in the early hours.

At 3:50 AM EST today, the US Dollar Index was trading at 93.77—a fall of 0.14%.

US Treasury yields

After rising for two trading weeks, US Treasury yields started this week on a mixed note. Despite the strong sentiment, disappointing payroll data weighed on Treasury yields.

Below are the movements in Treasury yields as of 3:55 AM EST on December 11.

  • The ten-year Treasury yield was trading at 2.378—a fall of ~0.22%.
  • The 30-year Treasury yield was trading at 2.768—a fall of ~0.26%.
  • The five-year Treasury yield was trading at 2.140—a fall of ~0.24%.
  • The two-year Treasury yield was trading at 1.799—a fall of ~0.02%.

The iShares 20+ Year Treasury Bond (TLT) rose 0.01%. The ProShares UltraPro Short 20+ Year Treasury (TTT) rose 0.24% and the ProShares UltraShort 20+ Year Treasury (TBT) rose 0.09% on December 8.

In the next part of this series, we’ll discuss how commodities performed in the early hours on December 11.


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