This week has just started and it’s already brought good news for the American economy: the 10-year, 5-year, and 3-year Treasury yields have all registered significant gains and have reached highs unseen since 2014. The 10-year yield, which is perhaps the most popular variety, is near the desired 3%, showing investors’ confidence in the US economy. This is further substantiated with the stable growth in inflation and the high likelihood of another interest rate hike soon.
As a result of the stellar performance of Treasury yields and the prospects of a rate increase, the USD managed to reach a nearly-two-months high. The Dollar index climbed above the 90 level to 90.44. The dollar made gains against the euro, pound, and Japanese yen, among others.
While there is renewed interest in Treasury yields and the US dollar, the stock market has suffered a bit, ending last week and opening this one on a relatively low note.
