US bond yields extend gains on economic data

The 10-year US Treasury yields ended Monday’s trading in a bullish direction, based on the rising US dollar, which is benefiting from rising interest rate expectations at the Fed’s policy meeting this week.

US Treasury yields for ten years have surged to 3.875%, compared to the previous daily close of 3.841%. Yields on benchmark bonds fell to the lowest levels over the course of the trading day, Monday, at 3.794%, compared to the highest levels, which recorded 3.876%.

The dollar index, which measures the performance of the US currency against a basket of major currencies, rose to 101.32 points, compared to the previous daily closing of 101.07 points. The index fell to its lowest level on the first trading day of this week at 100.89 points, compared to the highest level, which scored 101.41 points. This rise came as a batch of positive US data that was issued in succession since the last day of previous trading week.

The positive data sheds light on the fact that the US economy is still steadfast in the face of the current crisis in light of the high inflation and the environment that includes a significant rise in interest rates, which makes the Federal Reserve keen to take the decision to raise interest rates further so that the US dollar and US bond yields continue to benefit from this situation.