Economist's Insights

Yesterday’s Trading Activity – Dollar Rises with Treasury  Yields as Gains in Tech Buoy Stocks

Jul 25, 2017

The Treasury curve rose Monday and yields ended near their highs of the day. The 2-year yield closed up 1.7 bps at 1.36% as the 5-year (1.82%), 7-year (2.07%), and 10-year (2.26%) notes rose just under 2 bps. There was no clear catalyst for the rise, but instead yields steadily drifted higher throughout the session. As yields rose, so did the Dollar. The move in the currency was only minor and driven mainly by an easing Euro. The Euro had reached a 30-month high close last Friday. The higher yields also coincided with the financials sector’s first place finish within the S&P. Technology was the only other sector to notch a gain and the broader index closed down 0.1%. The Dow also slipped, falling 0.3%, but tech’s strength pushed the Nasdaq 0.4% higher and to a new record close.