The US dollar is at the best levels of the day as yields turn higher. US 10-year yields are up 2.3 bps to 4.87% after trading as low as 4.81%.
The move has come with a nearly $2 fall in oil from the lows. My guess is that hopes are the temperature will be turned down in the Middle East. The hospital attack yesterday looked like it might catalyze into a broader war yesterday but now that’s looking much less likely as it’s unclear who did it and how many people really died.
That’s a grim topic but that’s the state of play in markets currently. Watch for further dollar strength if US 10-year yields break the October high of 4.88%.
US 10 year yields