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US Dollar Index and Treasury Yields Are Mixed

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Apr. 6 2018, Published 8:04 a.m. ET

US Dollar Index

The US Dollar Index stated this week on a stable note and gained upward momentum as the week progressed. After a strong performance on April 5, the US Dollar Index started Friday on a mixed note and consolidated in the early hours.

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Market Sentiment

The market sentiment on the US Dollar Index improved this week as global trade war concerns cooled off. On April 5, comments from White House economic adviser Larry Kudlow increased the hopes of negotiations between the US and China and supported the US Dollar Index. The US Dollar Index rose to two-week high levels despite weaker-than-expected jobs data. According to the Department of Labor, US initial jobless claims surged to 242,000, which is higher than the forecast of 225,000. The US Dollar Index is trading with mixed sentiment in the early hours amid President Trump’s proposal to impose $100 billion more import taxes on China.

At 4:30 AM EST on April 6, the US Dollar Index was trading at 90.49—a gain of 0.06%.

US Treasury yields

US Treasury yields started this week on a weaker note but regained strength and rallied for three consecutive trading days as trade war concerns eased. However, trade war concerns resurfaced after President Trump’s comments on Thursday. Trade war concerns weighed on Treasury yields in the early hours.

Below are the movements in Treasury yields as of 4:30 AM EST on April 6.

  • The ten-year Treasury yield was trading at 2.821—a drop of ~0.39%.
  • The 30-year Treasury yield was trading at 3.065—a drop of ~0.26%.
  • The five-year Treasury yield was trading at 2.628—a drop of ~0.45%.
  • The two-year Treasury yield was trading at 2.299—a drop of ~0.36%.

The iShares 20+ Year Treasury Bond (TLT) declined 0.75%, while the ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) gained 2.2% and 1.5%, respectively, on April 5.

Next, we’ll discuss how commodities performed in the early hours on April 6.

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