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US Dollar Index and Treasury Yields Are Weaker

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US Dollar Index

After regaining strength last week, the US Dollar Index started this week on a stable note by gaining on Monday. However, the US Dollar Index started April 3 on a weaker note and traded with weakness below opening prices in the early hours.

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Market sentiment

The US Dollar Index regained stability last week as trade war concerns between the US and China cooled off and gave the dollar room to recover. The sentiment weakened this week following China’s decision to impose import tariffs of 15% on 120 US products. China also imposed 25% import tariffs on eight products including pork and related imports. In the early hours on Tuesday, the US Dollar Index is trading with weakness near the important price level of 90.00.

At 5:50 AM EST on April 3, the US Dollar Index was trading at 89.97—a drop of 0.09%.

US Treasury yields

US Treasury yields moved lower on Monday amid the sharp decline in the US equity market. The market declined amid trade war concerns and the tech sell-off. Treasury yields are stable in the early hours on Tuesday ahead of the Fed’s meeting and auction of $55 billion worth of four-week bills.

Below are the movements in Treasury yields as of 5:55 AM EST on April 3.

  • The ten-year Treasury yield was trading at 2.753—a gain of ~0.78%.
  • The 30-year Treasury yield was trading at 2.987—a gain of ~0.58%.
  • The five-year Treasury yield was trading at 2.574—a gain of ~1.04%.
  • The two-year Treasury yield was trading at 2.266—a gain of ~0.89%.

The iShares 20+ Year Treasury Bond (TLT) gained 0.20%, while the ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) declined 0.33% and 0.22%, respectively, on April 2.

Bitcoin

Bitcoin declined last week amid weakness in the cryptocurrency space. The weakness is due to mounting regulatory pressures. Bitcoin started to recover and opened this week on a stronger note. On April 3, Bitcoin opened the day higher and traded at one-week high price levels in the early hours. At 5:55 AM EST, the Bitcoin-US Dollar contract was trading at $7,356.2—a gain of 4.1%.

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

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