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US Dollar Index and Treasury Yields Rose Early on May 21

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US Dollar Index

The US Dollar Index regained strength and gained in all of the trading days last week. Carrying forward the strength, the US Dollar Index opened higher on Monday. In the early hours, the US Dollar Index was trading at the highest levels traded since December 2017.

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Market sentiment

The US Dollar Index rose to 2018 highs last week amid rising US bond yields. In the early hours on Monday, fewer concerns about a trade war between the US and China boosted the sentiment on the US Dollar Index. Weakness in the euro amid doubts about the newly formed Italian government also supported the US Dollar Index. The market is looking forward to speeches from FOMC members Bostic, Harker, and Kashkari that are scheduled for today.

At 5:45 AM EST on May 21, the US Dollar Index was trading at 93.94—a gain of 0.33%.

US Treasury yields

After moving higher for two consecutive trading weeks, US Treasury yields started Monday with a strong sentiment. The yields were stable above opening prices in the early hours. Below are the movements in Treasury yields as of 5:50 AM EST on May 21.

  • The ten-year Treasury yield was trading at 3.073—a rise of ~0.18%.
  • The 30-year Treasury yield was trading at 3.207—a rise of ~0.05%.
  • The five-year Treasury yield was trading at 2.909—a rise of ~0.54%.
  • The two-year Treasury yield was trading at 2.570—a rise of ~0.82%.

The iShares 20+ Year Treasury Bond (TLT) gained 0.86%, while the ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) declined 1.7% and 2.7%, respectively, on Friday.

Next, we’ll discuss how commodities performed in the early hours on May 21.

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