The dollar advanced on Monday, poised for its strongest daily performance since June 17, a day marked by the first FOMC meeting under Chairman Kevin Warsh. The Bloomberg Dollar Spot Index saw an increase of up to 0.6% after remaining flat on Friday, despite a larger-than-expected rise in core inflation.
Simultaneously, Treasury yields for the 10-year note climbed for the fifth consecutive session, breaching 5%—a level not seen since 2023. This surge in yields was fueled by mounting inflation concerns and increased government and corporate borrowing demands, pushing the yield as high as 5.01%. The last time it briefly touched this level was in October 2023.
Meanwhile, West Texas Intermediate (WTI) crude oil prices stayed above $100 per barrel, reaching its highest intraday level since May 19. This overall market activity indicates growing concerns over inflation and supply-demand imbalances in the bond market.
