XE Market Analysis: Europe – Mar 05, 2021

The dollar has continued to ascend on the back of a continued rise in Treasury yields. The 10-year T-note yield has settled near 1.560% after pushing above 1.580% yesterday. The yield is up over 63 bp on the year to date. The dollar, as gauged by the DXY index, earlier posted a 10-week high at 91.77, which marks a 2.3% gain from last week’s low. The reason for the latest upward yield burst was Fed Chair Powell, who tacitly approved of the upward trajectory of yields by acknowledging the spike while saying that he “would be” concerned by a “disorderly” move in markets.