As US bond yields climb and dollar index nears 105: A sign of trouble ahead?
In September, the US Dollar Index once again approached the 105 level, and the yield on 10-year Treasury bonds briefly rose above 4.3%. Optimism around the US economic outlook and the Treasury Department's larger-than-expected bond issuance for H2 2023 have been the key factors driving both the US dollar and 10-year yields higher in recent weeks. Underlying support for the US dollar and bond yields looks strong, but momentum is running out of steam and a stabilization period is expected to ensue over the coming months.
