US Dollar Index
After regaining strength and rebounding last week, the US Dollar Index opened Monday on a stronger note but lost strength as the day progressed. The US Dollar Index is trading with weakness in the early hours on February 26.
The dollar surged last week amid speculations about an increase in the interest rate hike pace in 2018 and support from rising bond yields. US Treasury yields pulled back at the end of last week amid a report on monetary policy without signs of an increase in the interest rate hike pace. In the early hours on Monday, Treasury yields are trading with weakness and weighing on the US Dollar Index. Caution ahead of Fed Chairman Jerome Powell’s first congressional testimony also weighed on the US Dollar Index.
At 5:05 AM EST on February 26, the US Dollar Index was trading at 89.55—a drop of 0.37%.
US Treasury yields
After pulling back at the end of last week, US Treasury yields started this week on a weaker note. In the early hours on Monday, Treasury yields are trading with weakness. The market is looking forward to Powell’s first congressional testimony.
Below are the movements in Treasury yields as of 5:10 AM EST on February 26.
- The ten-year Treasury yield was trading at 2.862—a fall of ~0.3%.
- The 30-year Treasury yield was trading at 3.152—a fall of ~0.25%.
- The five-year Treasury yield was trading at 2.610—a fall of ~0.31%.
- The two-year Treasury yield was trading at 2.234—a rise of ~0.36%.
The iShares 20+ Year Treasury Bond (TLT) rose 0.89%. The ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) fell 2.5% and 1.8%, respectively, on February 23.
After pulling back last week, Bitcoin started this week on a weaker note. Increased regulatory pressures on cryptocurrencies around the world, especially in Asia, have weighed on Bitcoin in 2018. At 5:15 AM EST, the Bitcoin-US Dollar contract was trading at $9,557.6—a drop of 0.54%.
Next, we’ll discuss how commodities performed in the early hours on February 26.