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6 May 2015
US Treasury yields rise, dollar does not
FXStreet (Mumbai) - The yields on the short duration and long duration Treasuries in the US shot higher on the back of an upbeat services PMI report and extended rally in German debt.
Currently, the 10-year yield in the US trades 4.7 basis points higher at 2.182%, while the 30-year yield is up 4 basis points at 2.908%. At the short-end, the 2-year yield advanced 2.8 basis points to 0.627%. The treasury yields were boosted by a better-than-expected ISM services activity report.
However, the major boost comes from the rise in the German debt, which toppled treasuries as a safe haven asset as it forms the major portion of the ECB’s QE program. The sustained rise in the benchmark Bund yield has pushed the bond yields higher across the Eurozone and in the US.
Still, the US dollar has lagged, especially since the uptick in the bond yields across the Eurozone and other major nations has been stronger than the rise witnessed in the Treasury yields.
Currently, the 10-year yield in the US trades 4.7 basis points higher at 2.182%, while the 30-year yield is up 4 basis points at 2.908%. At the short-end, the 2-year yield advanced 2.8 basis points to 0.627%. The treasury yields were boosted by a better-than-expected ISM services activity report.
However, the major boost comes from the rise in the German debt, which toppled treasuries as a safe haven asset as it forms the major portion of the ECB’s QE program. The sustained rise in the benchmark Bund yield has pushed the bond yields higher across the Eurozone and in the US.
Still, the US dollar has lagged, especially since the uptick in the bond yields across the Eurozone and other major nations has been stronger than the rise witnessed in the Treasury yields.