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US Dollar Index and Treasury Yields in the Early Hours

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US Dollar Index

After gaining strength last week, the US Dollar Index started this week on a mixed note and moved higher as the day progressed. On March 1, the US Dollar Index opened the day higher and consolidated at opening prices in the early hours.

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Market sentiment

The US Dollar Index moved higher last week amid a rally in US bond yields. However, the pullback in Treasury yields at the end of last week and a weak start this week weighed on the US Dollar Index. The US Dollar Index regained momentum following comments from Fed Chair Jerome Powell. His comments triggered speculations about an increased interest rate hike pace in 2018, which boosted the US Dollar Index. The market is looking forward to releasing of ISM manufacturing data and Powell’s testimony on the economic outlook and monetary policy actions, which are scheduled for March 1.

At 4:05 AM EST on March 1, the US Dollar Index was trading at 90.69—a gain of 0.08%.

US Treasury yields

After pulling back amid fresh interest rate hike fears, US Treasury yields are trading with weakness in the early hours on March 1.

Below are the movements in Treasury yields as of 4:10 AM EST on Thursday.

  • The ten-year Treasury yield was trading at 2.842—a fall of ~0.89%.
  • The 30-year Treasury yield was trading at 3.105—a fall of ~0.72%.
  • The five-year Treasury yield was trading at 2.630—a fall of ~0.82%.
  • The two-year Treasury yield was trading at 2.254—a rise of ~0.35%.

The iShares 20+ Year Treasury Bond (TLT) rose 0.64%. The ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) fell 1.3% and 1.9%, respectively, on February 28.

Bitcoin

After starting this week on a stronger note, Bitcoin moved higher this week due to decreased volatility. However, regulatory pressures are keeping caution alive in the cryptocurrency market. At 4:15 AM EST, the Bitcoin-US Dollar contract was trading at $10,660—a gain of 1.0%.

Next, we’ll discuss how commodities performed in the early hours on March 1.

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