US Dollar Index
The US Dollar Index started this week on a stable note and surged to the highest levels traded since November 7, 2017, on Tuesday. On May 30, the US Dollar Index opened the day on a mixed note. The US Dollar Index was trading below opening prices in the early hours.
The US Dollar Index surged on Tuesday. The political turmoil in Italy increased the demand for the safe-haven assets like the US dollar. However, the US Dollar Index started to pull back in the early hours on Wednesday amid profit-booking ahead of major economic releases. The releases include May’s US ADP non-farm employment change, the first quarter US GDP, and April’s US goods trade balance data. The data are scheduled to be released today. The market expects the ADP non-farm employment change to increase by 186,000. The data are scheduled to be released at 8:15 AM EST today.
At 5:20 AM EST on May 30, the US Dollar Index was trading at 94.46—a drop of 0.39%.
US Treasury yields
After a sharp decline to seven-week low price levels on Tuesday amid political turmoil in Italy, the ten-year US Treasury yield started to rebound in the early hours on Wednesday. The rebound in Italian equity markets and a pullback in US bonds are supporting the yields’ recovery in the early hours.
Below are the movements in Treasury yields as of 5:25 AM EST on May 30.
- The ten-year Treasury yield was trading at 2.842—a gain of ~2.7%.
- The 30-year Treasury yield was trading at 3.025—a gain of ~1.9%.
- The five-year Treasury yield was trading at 2.668—a gain of ~3.6%.
- The two-year Treasury yield was trading at 2.391—a gain of ~3.1%.
The iShares 20+ Year Treasury Bond (TLT) gained 2.2%, while the ProShares UltraShort 20+ Year Treasury (TBT) and the ProShares UltraPro Short 20+ Year Treasury (TTT) declined 4.3% and 6.4%, respectively, on Tuesday.
Next, we’ll discuss how commodities performed in the early hours on May 30.