USD Strengthens as US 10-Year Yield Surges 7.3 Basis Points

The US dollar is gaining momentum against major currencies, driven by a sharp rise in US Treasury yields. The 10-year yield has jumped 7.3 basis points, while the 2-year yield reached session highs at 3.534%, up 4.3 basis points. This yield surge reflects growing market expectations of sustained higher interest rates and potentially less aggressive Fed easing in 2025. The dollar index has responded positively to the yield movements, with USD pairs showing broad strength across the board. Technical indicators suggest continued upward pressure on the dollar as bond markets price in a more hawkish monetary policy outlook. The yield curve dynamics indicate investors are reassessing inflation risks and economic growth prospects. Traders should monitor key resistance levels on major USD pairs as the greenback tests recent highs amid this yield-driven rally.