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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.

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

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.

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