Dollar Rises for Fifth Straight Session as Long-Dated US Treasury Yields Hit Multi-Decade Highs

Deep News04:30

Long-dated US Treasury yields climbed to multi-decade highs after a US Treasury bond buyback operation came in smaller than the market had expected, driving the dollar higher for a fifth consecutive trading day.

The Bloomberg Dollar Index rose 0.3%. As oil prices advanced, US Treasuries extended their decline, with the 30-year yield rising 8 basis points to 5.47%, its highest level since 2004.

The move followed a Treasury operation in which only $4.08 billion of Treasuries were bought back, equivalent to two-thirds of the $6 billion maximum for the operation.

Brent crude briefly rose to $108.23 a barrel, intensifying inflation concerns, after an Iranian official said the war between Iran and the United States could expand to the Indian Ocean or other regions.

The dollar rose as much as 0.5% against the yen to 159.04, on track for a fifth straight session of gains. Japanese Finance Minister Satsuki Katayama said the relevant principles "remain in effect" since the joint US-Japan intervention to support the yen.

Sterling fell 0.2% against the dollar to 1.3217. The euro swung between gains and losses before trading down 0.1% at 1.1371.

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