US Dollar Index
After trading with mixed sentiment last week, the US Dollar Index started this week on a stronger note. However, the US Dollar Index lost strength as the week progressed. On Wednesday, the US Dollar Index opened the day on a mixed note and was trading with weakness in the morning session.
On Tuesday, the US Dollar Index lost strength as the pound moved higher. The release of weaker-than-expected services PMI data weighed on the US Dollar Index. According to Markit, the US services PMI declined to 56.2 in July, which is less than the forecast of 56.5. The market is looking forward to the release of US new home sales. The data are scheduled to be released at 10:00 AM EST today. At 5:40 AM EST on July 25, the US Dollar Index was trading at 94.45—a drop of 0.16%.
US Treasury yields
US Treasury yields pulled back on July 24 from the highs reached on Monday. On Tuesday, US bonds moved higher and weighed on Treasury yields. Treasury yields move opposite to bond movement. Higher demand at the auction of $35 billion in two-year notes on July 24 boosted US bonds.
Below are the movements in Treasury yields as of 5:45 AM EST on July 25.
- The ten-year Treasury yield was trading at 2.943—a fall of ~0.24%.
- The 30-year Treasury yield was trading at 3.069—a fall of ~0.27%.
- The five-year Treasury yield was trading at 2.814—a fall of ~0.16%.
- The two-year Treasury yield was trading at 2.645—a fall of ~0.26%.
The iShares 20+ Year Treasury Bond (TLT) gained 0.34%. The ProShares UltraShort 20+ Year Treasury (TBT) and the ProShares UltraPro Short 20+ Year Treasury (TTT) fell 0.62% and 1.03%, respectively, on Tuesday.
Next, we’ll discuss how commodities performed in the early hours on July 25.