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Dollar ticks up as Treasury yields partly claw back fall

The dollar ticked higher on Monday as Treasury yields rose off last week’s 2-1/2-month lows following news that initial observations suggested those suffering from the Omicron COVID-19 strain only had mild symptoms.

The Omicron news from South Africa helped reverse some of the moves from Friday, when Wall Street had sold off heavily.

That selloff had taken 10-year Treasury yields below 1.4% for the first time since late-September and boosted the safe-haven yen and Swiss franc. The dollar had tumbled as much as 0.4% lower against the Japanese currency.

The dollar index inched 0.10% higher at 96.29, within range of November’s 16-month peak of 96.938. It was also 0.2% higher against the yen at 113.05 yen and rebounded 0.4% to the franc.

U.S. yields rise modestly as risk-off mood eases

U.S. Treasury yields rose on Monday, with the benchmark 10-year briefly climbing back above 1.4% after hitting its lowest level since late September on Friday in the wake of the November jobs report.

The yield on 10-year Treasury notes was up 4.8 basis points to 1.389% after rising as much as 1.404% on the day, after falling as low as 1.335% on Friday, its lowest since Sept. 23.

Sterling rises as BoE's Broadbent warns of price pressure from tight job market

Reference: CNBC, Reuters