There is a fairly pervasive view at the moment that the bond market is ranging and that we have to wait for a change in economic data to break the paradigm. Given that, it’s not a big surprise that a 5-8 bps drop in Treasury yields today hasn’t moved the dollar but it’s still a notable sign.

The US dollar had its worst H1 in 50 years but has rebounded modestly so far to start the second half. Some of that was underpinned by a steady climb in yields as 10s rose to 4.42% from 4.22% but that’s reversed 7.7 bps today and the dollar is basically flat. I wouldn’t draw any big conclusions about a further dollar bounce based on one day of price action (with not much else going on in markets) but it’s something to keep an eye on.

Later this year,
ForexLive.com
is evolving into
investingLive.com, a new destination for intelligent market updates and smarter
decision-making for investors and traders alike.