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US ten-year yield above 2.3, Dollar Index gains

FXStreet (Mumbai) - The ten-year treasury yield in the US is back above the August lows of 2.3 after the hawkish comments from the Federal Reserve (Fed) non voting member Bullard hit the wires yesterday. The rise in ten-year yield has pushed the US Dollar (USD) higher against the basket of currencies.

Bullard’s comments that markets lagged behind the Fed committee with respect to the interest rate expectations supported the treasury yield. The two-year bond yield, a barometer of short term interest rate expectations, is trading at 0.468 after having hit a low of 0.424 hit yesterday.

A few more policymakers are scheduled to speak today. Fed official and a renowned hawk, Plosser, is likely to come out hawkish. Plosser’s speech will be followed by Fed officials – George, Fisher, and Lacker. If their comments contradict the minutes released earlier this week, then we would see a further rise in the ten-year treasury yields.

Ten-year Treasury yield Technical level

The Ten-year yield has an immediate support of 2.3, while the immediate resistance is located at 2.35 levels.

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