U.S. Treasury yields were higher on Monday even as equities markets fell, as traders looked ahead to a Wednesday bond auction.
The benchmark 10-year yield was up 3.2 basis points in afternoon trading at 1.6047% after reaching as high as 1.617% during the morning. The level was well above the multiweek low of 1.528% reached April 15.
Dollar slumps to 6-week low with all eyes on interest rate moves
The dollar slumped to a six-week low against other major currencies on Monday as markets sorted out the plunge in U.S. Treasury yields last week after the Federal Reserve reiterated that any spike in inflation is likely to be temporary.
Improved risk sentiment shown by the recent rally in global stocks to record highs also weighed on the greenback.
The dollar index fell 0.58% to 91.082, continuing a downtrend that started at the end of March.
The dollar index had gained 3.6% in the first three months of the year before turning down.
With the moves, the British pound gained 1% to come within a hair of $1.40 for the first time since March 18. More evidence of the economic recovery in Britain from the pandemic is expected from data to be released later this week.
The euro rose above $1.20 for the first time since March 4 to $1.2037 in the afternoon in New York. The European Central Bank meets on Thursday with internal divisions over the pace of bond-buying, extended COVID-19 lockdowns and potential delays to the EU recovery fund forming the backdrop.
Reference: Reuters
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