Dollar gets no reprieve from softer Treasury yields
10-year Treasury yields are keeping with the break below 1.60% as they are seen down more than 2 bps to 1.559% currently. The low today hit 1.550%.
While US economic data and vaccine progress continues to reaffirm signs of a strong economic rebound in 2H 2021, it is tough to fight sentiment in the latest correction here.
The market seems to have realised it has gone too far, too fast and is now readjusting – needing to await more robust key economic data to compensate for its expectations.
In any case, lower yields today is but of little comfort for the dollar. For those watching the dollar index (pretty much a reflection of EUR/USD), it is approaching a key technical level in the form of its 100-day moving average now: