Starting from the last days of September, the U.S. Dollar Index (DXY) has been trading within a sideways channel. Macroeconomic data released last week did not provide a clear advantage to either the U.S. or the European currency. On Tuesday, October 17, U.S. retail sales data was published, showing a monthly increase of 0.7%. Although this figure was lower than the previous 0.8%, it substantially exceeded the market's average forecast of 0.3%. On the same day, the ZEW Economic Sentiment Index for the Eurozone was also released, outperforming expectations with a reading of 2.3, considerably better than the forecast of -8, and marking a full rebound from the previous negative figure of -8.9.
Analysis: Relentless climb in Treasury yields may have further to run after surging to 5% reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
Some investors believe a bond market selloff that has pushed the benchmark U.S. Treasury yield to 5% may have more room to run, as the Federal Reserve gives little indication of veering from its.
Some investors believe a bond market selloff that has pushed the benchmark U.S. Treasury yield to 5% may have more room to run, as the Federal Reserve gives little indication of veering from its "higher for longer" mantra. Fed Chair Jerome Powell walked a narrow line in his speech before the New York Economic Club on Thursday, saying the stronger-than-expected economy might warrant tighter financial conditions while also noting emerging risks and a need to move with care. Yields on the benchmark 10-year Treasury, which move inversely to bond prices, rose briefly to 5% late on Thursday, a closely watched level not seen since 2007.