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US Dollar Index is Mixed, US Treasury Yields Are Stable

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Jul. 30 2018, Updated 9:30 a.m. ET

US Dollar Index

Last week, the US Dollar Index regained strength and closed higher. However, the US Dollar Index opened slightly lower this week and was trading with mixed sentiment in the early hours.

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Market sentiment

The US Dollar Index pulled back on Friday despite the release of strong US second-quarter GDP data. The markets were concerned about the economic growth outlook amid the US-China trade war. On Monday, the US dollar is trading with mixed sentiment amid caution ahead of the Bank of Japan, Bank of England, and the Fed’s policy meetings scheduled this week. The market expects the FOMC to keep the interest rates unchanged in this month’s meeting. The interest rates are expected to increase in September.

At 5:10 AM EST on July 30, the US Dollar Index was trading at 94.56—a drop of 0.12%.

US Treasury yields

US Treasury yields moved higher in the last two weeks and were trading at elevated levels early on Monday. US bond prices fell amid the expectation of a gradual increase in the interest rates, which supported the Treasury yields. Treasury yields move opposite to bond prices.

Below are the movements in the Treasury yields as of 5:10 AM EST on July 30.

  • The ten-year Treasury yield was trading at 2.980—a gain of ~0.61%.
  • The 30-year Treasury yield was trading at 3.109—a gain of ~0.67%.
  • The five-year Treasury yield was trading at 2.858—a gain of ~0.42%.
  • The two-year Treasury yield was trading at 2.673—a drop of ~0.13%.

The iShares 20+ Year Treasury Bond (TLT) rose 0.17%. The ProShares UltraShort 20+ Year Treasury (TBT) and the ProShares UltraPro Short 20+ Year Treasury (TTT) fell 0.4% and 0.61%, respectively, on July 27.

Next, we’ll discuss how commodities performed in the early hours on July 30.

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