US Dollar Index and Treasury Yields in the Early Hours
US Dollar Index
The US Dollar Index regained stability last week and broke the six-week losing streak. The US Dollar Index started this week on a stronger note and gained in the first two trading days. On Wednesday, the US Dollar Index opened the day on a mixed note and consolidated at opening prices in the early hours.
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The US Dollar Index paused its sell-off and started to rebound from three-year low price levels following the release of stronger-than-expected US jobs data on February 2. The sell-off in equity markets since the beginning of this week improved the demand for safe-haven assets and helped the US Dollar Index rebound from multiyear low price levels. Unlike equity markets, higher volatility wasn’t observed in the US Dollar Index’s movements. The market is looking forward to speeches from FOMC members Dudley and Williams today.
At 4:25 AM EST on February 7, the US Dollar Index was trading at 89.67—a gain of 0.09%.
US Treasury yields
After a strong performance last week, US Treasury yields pulled back on Monday amid a sell-off in the equity market. Treasury yields started to recover on Tuesday amid a rebound in equity markets. In the early hours on Wednesday, Treasury yields are trading with mixed sentiment amid a pullback in US futures.
Below are the movements in Treasury yields as of 4:30 AM EST on February 7.
- The ten-year Treasury yield was trading at 2.762—a fall of ~0.14%.
- The 30-year Treasury yield was trading at 3.031—a fall of ~0.4%.
- The five-year Treasury yield was trading at 2.496—a fall of ~0.49%.
- The two-year Treasury yield was trading at 2.073—a fall of ~0.97%.
The iShares 20+ Year Treasury Bond (TLT) fell 0.62%. The ProShares UltraPro Short 20+ Year Treasury (TTT) and the ProShares UltraShort 20+ Year Treasury (TBT) rose 2% and 1.4%, respectively, on February 6.
Following a four-week losing streak, bitcoin started this week on a weaker note. However, bitcoin started to rebound on Tuesday and continued to recover on Wednesday. Bitcoin opened higher on Wednesday and traded with strength above opening prices.
At 4:35 AM EST, the Bitcoin-US Dollar contract was trading at $7,880.0—a gain of 19.10%.
Next, we’ll discuss how commodities performed in the early hours on February 7.