122.27 +0.01 (0.01%)
After hours: 4:47PM EDT
|Bid||122.20 x 3000|
|Ask||122.37 x 3100|
|Day's Range||121.77 - 122.44|
|52 Week Range||116.09 - 129.57|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.15%|
The US Dollar Index lost strength at the end of last week and started this week on a weaker note. However, the US Dollar Index regained strength as the week progressed. On Thursday, the US Dollar Index opened higher and was trading with strength at one-year high price levels in the early hours.
While fund managers are bullish on US equities (SPY), there is still no lack of concern. In the BAML (Bank of America Merrill Lynch) July 2018 survey, for the third month in the last five months, trade war concerns were cited as the top concern of global fund managers. A total of 60% of the fund managers surveyed cited the trade war risk as the top tail risk.
After closing higher last week, the US Dollar Index started this week on a weaker note but regained strength as the week progressed. The US Dollar Index opened strong on July 18 and was trading with strong sentiment at the highest levels traded in July in the early hours.
The US Dollar Index started this week on a stronger note and gained in the first four trading days. Carrying forward the strength, the US Dollar Index started July 13 on a stronger note. The US Dollar Index was trading with strength at two-week high price levels in the early hours.
After pulling back last week, the US Dollar Index regained strength this week and gained it the first three trading days. Carrying forward the strength, the US Dollar Index opened stronger on Thursday and was trading with strength at ten-day high price levels in the early hours.
A yield curve tracks the yields of Treasury securities maturing at different time periods. The narrowing of the difference between these yields is usually referred to as the “flattening of the yield curve.” The more concerning thing is when the yield curve (BND) inverts, which means that the yields on shorter duration securities increase those on the longer-term securities. The inversion of the yield curve has been a good indicator of an upcoming recession in the past.
The Federal Reserve released the minutes of its June meeting on July 5. The Fed raised interest rates (TLT) by 25 basis points to 1.75% to 2.0% at its June meeting, the second time in 2018. The committee listed the strong labor market, federal tax and spending policies, and high levels of household business confidence as positive factors supporting US economic growth.
Last week, the US Dollar Index closed at three-week low price levels. However, the US Dollar Index regained strength at the beginning of this week and closed higher on Monday. On July 10, the US Dollar Index started the day on a stable note and was strong in the early hours.
U.S. equities continue to trade nervously at the start of U.S. trade tariffs on $34 billion of Chinese imports — an act that will then be met with countervailing tariffs on U.S. imports by the Chinese. While far more in potential tariffs have been announced by both sides as threats, neither side is showing any evidence of being interested in backing down from what looks like a worsening cycle of escalation.
Despite a tighter monetary policy out of the Federal Reserve with two more interest rate hikes planned later this year, Treasury bonds and related ETFs have been gaining momentum in recent weeks. Over ...
The US Dollar Index pulled back at the end of last week and closed the week with limited gains. However, the US Dollar Index closed higher on Monday and started this week on a stable note. On July 3, the US Dollar Index started the day on a mixed note and was trading with weakness in the early hours.
Number two, the higher fiscal deficit picture because of the tax law, so that has raised this issue. Number three is I think that the Fed has a lot of confidence now in the continuing normalization. You know, on the other side, everyone is saying, “Well, rates should correct or the yield curve’s flattening and that’s going to portend a recession.” And yes, there’s been a lot of chatter about that.
The US Dollar Index gained for three consecutive trading days and closed Thursday at fresh 11-month high price levels. However, the US Dollar Index started Friday on a mixed note and pulled back in the early hours.
The long-term Treasury bond ETFs have been on the rise over the past week on trade worries and will likely continue to do so at least for the near term.
The US Dollar Index started this week on a weaker note, regained strength, and moved higher as the week progressed. Maintaining the strength, the US Dollar Index opened higher on June 28 and was trading at 11.5-month high price levels in the early hours.
After a brief pullback last week, the US Dollar Index started this week on a weaker note. The US Dollar Index regained strength as the week progressed. On June 27, the US Dollar Index opened the day on a stronger note and was trading with mixed sentiment in the early hours.
After a brief decline last week, the US Dollar Index started this week on a weaker note by declining on Monday. However, the US Dollar Index started June 26 on a stronger note and was trading with strength in the early hours.
The US bond market continued to rebound as trade tensions and the limited appreciation in equity markets pushed demand for bonds higher, depressing the bond yields for a second consecutive week. Bond investors seem to be questioning the US Fed’s enthusiasm for higher rates as bond yields continued to retreat. There weren’t any major market-moving economic data releases last week, which could have led to the fall in bond yields.
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President Trump’s imposition of tariffs on China (MCHI) and key allies has rattled the markets (DIA) across the globe. China is the largest holder of US Treasuries (TLT). In March and April, several foreign governments reduced their US debt holdings—including T-bills—by $47.6 billion.