US Dollar Plummets as US 10-Year Treasury Yields Hit Record Lows

US Treasury Bond Yields Hit Record Low

The Euro/US Dollar pair has actually moved lock-step with 10-Year Treasury Bond prices through the past several weeks of trading. Bond prices move inversely to yield, and this chart shows us that falling Treasury yields have coincided with Euro/US Dollar gains. Whether or not this is a lasting shift remains to be seen, but record-low Treasury yields can intuitively hurt demand for the US Dollar.

US Treasury Bond and the US Dollar

Written by David Rodríguez, Quantitative Analyst for DailyFX.com
To contact the author of this report, e-mail  drodriguez@dailyfx.com