US Treasury yields retreat from 24-year highs after bond auction, dollar holds gains
US 10-year and 30-year Treasury yields hit 24-year highs before retreating after a strong $39 billion bond auction. The dollar index rose above 102 and held gains after the Fed minutes, while the euro and pound fell.
US 10-year and 30-year Treasury yields hit fresh 24-year highs on Wednesday before retreating from their peaks, as a well-received auction of $39 billion in 10-year notes spurred buying. The 10-year yield rose as high as 5.3645 per cent and the 30-year yield reached 5.7322 per cent, both climbing more than 9 basis points. They later pulled back, with the 10-year yield hovering above 5.28 per cent and the 30-year yield above 5.67 per cent.
In currency markets, the dollar index climbed above 102, finishing New York trading at 102.28, a gain of nearly 0.4 per cent. The dollar's advance briefly narrowed after the release of the Federal Reserve's meeting minutes but later recovered.
The euro was dragged lower by a sharp rise in French bond yields, approaching a 17-month low hit on Monday. It fell as low as $1.1166 before ending the session at $1.1194, a decline of about 0.6 per cent.
Sterling dropped nearly 0.5 per cent against the dollar, trading at $1.3208. The dollar was little changed against the yen, at 158.09 yen.