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US Dollar Index and Treasury Yields Are Mixed on March 22

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Mar. 22 2018, Updated 2:45 p.m. ET

US Dollar Index

After gaining for four consecutive trading weeks, the US Dollar Index started this week on a weaker note and declined as the week progressed. On March 22, the US Dollar Index opened on a weaker note and traded at four-week low price levels in the early hours.

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Market sentiment

The market sentiment was weak on the US dollar at the beginning of this week amid increased caution ahead of the Fed’s interest rate decision and the higher British pound. The US Dollar Index declined on Wednesday following the US interest rate hike by 0.25%. In the morning session on March 22, the US Dollar Index is maintaining the weakness and trading below the important level of 90. The market is looking forward to the release of the initial jobless claims and manufacturing purchasing managers’ index data. The data are scheduled to be released on Thursday.

At 4:45 AM EST on March 22, the US Dollar Index was trading at 89.52—a drop of 0.3%.

US Treasury yields

US Treasury yields spiked right after the announcement of the Fed’s interest rate hike with a hawkish tone. Highlighting economic strength, the Fed left the pace of the interest rates hikes in 2018 at three. The Treasury yields pulled back on Thursday and traded with weakness in the early hours.

Below are the movements in Treasury yields as of 4:50 AM EST on March 22.

  • The ten-year Treasury yield was trading at 2.857—a drop of ~1.7%.
  • The 30-year Treasury yield was trading at 3.083—a drop of ~1.5%.
  • The five-year Treasury yield was trading at 2.659—a drop of ~1.5%.
  • The two-year Treasury yield was trading at 2.303—a drop of ~0.54%.

The iShares 20+ Year Treasury Bond (TLT) gained 0.11%, while the ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) declined 0.45% and 0.25%, respectively, on March 21.

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