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US Dollar Index and Treasury Yields in the Early Hours

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US Dollar Index

After closing last week almost flat, the US Dollar Index started this week on a stronger note and gained in the first four trading days of the week. On Friday, the US Dollar Index opened the day on a stable note and consolidated at five-month high price levels in the early hours.

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Market sentiment

Rising US Treasury yields pushed the US Dollar Index to the highest levels traded this year on Thursday. Speculations about an increased interest hike pace added momentum to the US Dollar Index. Weakness in the euro also extended support. In the early hours on Friday, the US dollar is trading with mixed sentiment amid a pullback in US Treasury yields and the firmer euro. The market is looking forward to the speeches of FOMC members Brainard and Kaplan. The speeches are scheduled at 9:15 AM EST on Friday.

At 5:20 AM EST on May 18, the US Dollar Index was trading at 93.49—a gain of 0.02%.

US Treasury yields

US Treasury yields surged to multiyear high levels on Thursday amid the release of stronger-than-expected continuous jobless claims and the Philadelphia Fed Manufacturing Index data. US Treasury yields are slightly weaker in the early hours on Friday ahead of FOMC members’ speeches.

Below are the movements in Treasury yields as of 5:20 AM EST on May 18.

  • The ten-year Treasury yield was trading at 3.104—a fall of ~0.16%.
  • The 30-year Treasury yield was trading at 3.243—a fall of ~0.1%.
  • The five-year Treasury yield was trading at 2.926—a fall of ~0.21%.
  • The two-year Treasury yield was trading at 2.561—a fall of ~0.45%.

The iShares 20+ Year Treasury Bond (TLT) declined 0.51%, while the ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) gained 1.6% and 0.92%, respectively, on Thursday.

Next, we’ll discuss how commodities performed in the early hours on May 18.

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