There was no lack of volatility on Wednesday in Treasuries and Adam Button of ForexLive.com lays out why bond market movement may offer a reason to buy US dollars.
Keep an eye on the bond market in the day ahead.
The one spot where there was no lack of volatility on Wednesday was in Treasuries. US 10-year yields were up 6 basis points to 2.625%. A break above the downtrend since May or the 100-dma could pull in the bond shorts for another round and provide a reason to buy US dollars.
European yields moved up alongside Treasuries so there wasn’t really any move on spreads but that could change if we get another day like Wednesday.
US 10 year yields
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By Adam Button, Editor, ForexLive.com
