US 10-year Treasury yield rises to the highest level in two weeks above 1.60%

US 10-year yield rebounds sharply from 1.54%, back to 1.60%.
Yields across the curve hit fresh daily highs on American hours.
DXY is back in positive territory for the day, above 95.00.

Matías Salord FXStreet

US yields turned to the upside during the American session and climbed to weekly highs. The 10-year yield rose from under 1.55% to 1.609%, reaching the highest level in two weeks. Treasury yields across the curve reached fresh highs with the 2-year rising to 0.542%, the 5-year at 1.257% and the 30-year at 1.989%.

At the same time, the US 10-year TIPS yield (protected by inflation) remains is flat on Monday, near the record low at -1.162%.

Last week US inflation numbers weighed on Treasuries, triggering a rally in yields that still goes on. If the 10-year manages to consolidate above 1.60%, higher figures are expected.

The moves in the bond market continue to support the greenback. The DXY is back into positive territory after falling toward 95.00 and it stands at 95.16, looking at the recent cycle high of 95.26.

Economic data released on Monday surpassed expectation with the Empire Manufacturing index at 30.9 in November up from 21.6, and significantly above the 21.9 of market consensus. On Tuesday, the retail sales report is due.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD picks up extra pace north of 1.1400

EUR/USD extends its recovery past 1.1400 the figure as the NA session draws to a close on Monday. Indeed, the pair advances for the third straight day amid the persistent offered bias in the US Dollar. Meanwhile, market participants keep gearing up for the ECB Forum in Sintra and the release of critical US labour market data.

Gold struggles to attract investors

Gold remains under marked selling pressure, holding on just above the key $4,000 mark per troy ounce at the beginning of the week. The precious metal reverses two daily advances in a row as renewed effervescence in the Middle East revive inflation concerns and bolster Fed rate hike expectations.

Strategy unveils plan allowing Bitcoin sales to fund stock buybacks, dividends and reserves

Strategy (MSTR) has unveiled a Digital Credit Framework to strengthen the company’s financial standing. Under the new framework, the world’s largest corporate holder of Bitcoin (BTC) will pivot from its previous accumulation strategy, opting to sell BTC in order to boost liquidity, fund dividend payments, execute stock buybacks, and strengthen cash reserves.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.