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US Dollar Index and Treasury Yields in the Early Hours

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US Dollar Index

After gaining for three consecutive trading weeks, the US Dollar Index started this week on a stable note by closing higher on Monday. Carrying forward the strength, the US Dollar Index started May 8 on a strong note and surged to the highest levels traded in 2018.

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Market sentiment

The US Dollar Index moved higher on Monday amid a drop in the euro and rising crude oil prices. The up move in crude oil prices increased the chances of high inflation and strengthened the speculations of a faster interest rate hike pace in 2018, which boosted the sentiment on the US Dollar Index this week. The unemployment rate fell to the lowest levels since 2000, according to the jobs report last Friday. The lower unemployment rate supported the US Dollar Index.

At 5:20 AM EST on May 8, the US Dollar Index was trading at 92.97—a gain of 0.24%.

US Treasury yields

After a brief pullback last week, US Treasury yields regained strength this week amid the up move in equities and crude oil. The Treasury yields are trading with mixed sentiment in the early hours amid the pullback in crude oil prices. Below are the movements in Treasury yields as of 5:25 AM EST on May 8.

  • The ten-year Treasury yield was trading at 2.946—a fall of ~0.14%.
  • The 30-year Treasury yield was trading at 3.113—a fall of ~0.22%.
  • The five-year Treasury yield was trading at 2.787—a gain of ~0.11%.
  • The two-year Treasury yield was trading at 2.501—a gain of ~0.17%.

The iShares 20+ Year Treasury Bond (TLT) declined 0.16%, while the ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) gained 0.38% and 0.37%, respectively, on Monday.

Next, we’ll discuss how commodities performed in the early hours on May 8.

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