US 10-year Treasury yield hit 42-month high


  • 10-year T-yield continues its ascent despite Friday's US GDP miss. 
  • Rising yield seems to have put a bid under the USD. 

The yield on the US 10-year treasury note rose to 2.692 percent in Asia; its highest level since July 2014. 

As of writing, the yield is trading at 2.686 percent; up close to 30 basis points this month. 

The US data released on Friday showed the GDP growth slowed to 2.6 percent in the four quarter vs. 3.2 percent in the third quarter. The details revealed the growth rate was dragged down by a sharp rise in imports. Still, the yields continue to rise seemingly due to strong consumer spending. A gauge of domestic demand jumped at a 4.6 percent rate, the quickest since the third quarter of 2014. 

Also, the rising yield seems to have put a bid under the US dollar. The dollar index, which tracks the value of the greenback against other currencies, has strengthened 0.20 percent or 18 cents, now trading at 89.05 levels. 

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