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

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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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