US dollar gathers momentum as yields continue to rise
Yesterday's reversal higher in Treasury yields helped to lift the dollar but not as much as I would have expected. With a further 7 bps in US 10-year yields today, the climb has been too much to ignore.The US dollar is at the highs of the day across the board, including a one-month high in USD/JPY -- up 32 pips to 157.52.Yields began the climb yesterday after poor auction results in 2-year and 5-year notes. There is a 7-year sale today that will be closely scrutinized.In the big picture, Treasury yields are now above where they were before the most-recent CPI report in a sign that the market isn't convinced that the inflation story is done, or is worried about unsustainable US deficits. This article was written by Adam Button at www.forexlive.com.
Yesterday's reversal higher in Treasury yields helped to lift the dollar but not as much as I would have expected. With a further 7 bps in US 10-year yields today, the climb has been too much to ignore.
The US dollar is at the highs of the day across the board, including a one-month high in USD/JPY -- up 32 pips to 157.52.
Yields began the climb yesterday after poor auction results in 2-year and 5-year notes. There is a 7-year sale today that will be closely scrutinized.
In the big picture, Treasury yields are now above where they were before the most-recent CPI report in a sign that the market isn't convinced that the inflation story is done, or is worried about unsustainable US deficits. This article was written by Adam Button at www.forexlive.com.
