USD/CAD jumps up to 1.2700 over Treasury yields

As Tuesday’s American trading session opened, the USD/CAD was trading at 1.2700, up by 0.59%.
The USD/CAD pair has risen on the back of higher U. S. Treasury yields and the fall of the market’s risk sentiment.
The U. S. 10-year Treasury yield reached a fresh two-month high at 1.567%. The fall in oil prices as expected weighed on the USD/CAD.
The market sentiment is quiet, with global stocks recording losses in the prospects of central banks worldwide, looking forward to reducing the pandemic stimulus programs that have been in force since March 2020.
The argument over the U. S. spending bill and the suspension of the debt ceiling in the United States have added additional pressure on the market sentiment.
The spending bill is still away from compromise over concerns that the proposed draft would dry out the Treasury, which could cause the U. S. government to run out of money between the second half of October or early November.
The 10-year benchmark yield rose eight basis points (bps) touching a new high of 1.567%, underpinning the U. S. Dollar Index, which tracks the dollar’s performance against six rivals, up 0.36%, currently at 93.75, while WTI is down some 0.70%, trading at $74.74, exerting upward pressure on the USD/CAD pair.