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US Dollar Index and Treasury Yields: Mixed on February 22

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US Dollar Index

After pulling back last week, the US Dollar Index started this week on a stronger note and rallied to ten-day high price levels. On Thursday, the US Dollar Index opened the day higher and traded with mixed sentiment in the early hours.

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Market sentiment

The US Dollar Index surged to ten-day high price levels on Wednesday following a rally in Treasury yields. The ten-year Treasury yield surged to four-year high levels on February 21 and traded close to 3%. The Fed’s meeting minutes released on Wednesday raised speculations that interest rates might increase four times in 2018 instead of three times. The outlook boosted Treasury yields and the US dollar on Wednesday. The pullback in Treasury yields in the early hours on Thursday limited the upward movement in the US Dollar Index.

At 4:25 AM EST on February 22, the US Dollar Index was trading at 90.09—a gain of 0.1%.

US Treasury yields

After surging on Wednesday following the Fed’s meeting minutes, US Treasury yields pulled back in the early hours on Thursday. Below are the movements in Treasury yields as of 6:30 AM EST on February 22.

  • The ten-year Treasury yield was trading at 2.934—a fall of ~0.26%.
  • The 30-year Treasury yield was trading at 3.210—a fall of ~0.33%.
  • The five-year Treasury yield was trading at 2.677—a fall of ~0.26%.
  • The two-year Treasury yield was trading at 2.274—a rise of ~0.18%.

The iShares 20+ Year Treasury Bond (TLT) fell 1.2%. The ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) rose 3.6% and 2.3%, respectively, on February 21.

Bitcoin

Bitcoin rebounded last week and broke the five-week losing streak. Carrying forward the strength, Bitcoin started this week on a stronger note but lost strength as the week progressed. On Thursday, Bitcoin opened the day lower amid weak sentiment across all of the major cryptocurrencies. Bitcoin traded with weakness in the early hours.

At 6:40 AM EST, the Bitcoin-US Dollar contract was trading at $10,248.0—a drop of 7.2%.

Next, we’ll discuss how commodities performed in the early hours on February 22.

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