US Treasury yields jump above 3% for the first time since January 2014

The US 10-year Treasury yields rise to 3.003% for the first time since January 2014.
Rising US benchmark Treasury yields are in line with Fed’s monetary policy normalization.
Rising US benchmark Treasury yields underpin US Dollar, mainly against Yen.

FXStreet Team FXStreet

The 10-year US Treasury yields rose to 3.003% around the Wall Street open on Tuesday, rising to the strongest level since January 2014 and breaking out of the range trap. The US Treasuries retreated back below the 3.0% psychological line thereafter, but the move higher underpins the US Dollar strongly.

The move on the US benchmark Treasuries started on Monday this week and it reflects the activity of the US Federal Reserve Bank’s policy of monetary policy normalization that has started back in December 2015 with the interest rate hike and Fed’s very gradual balance sheet reduction.

From the foreign exchange market perspective the rising US benchmark Treasury yield support the US Dollar mainly against the Japanese Yen where the monetary policy is being trapped in an environment of inflation well below the Bank of Japan 2% target and repeated interventions from the Bank of Japan officials saying that current level of monetary stimulus is still needed in Japan.

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FXStreet Team

FXStreet

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