Dollar and Treasury Yields Surge After Fed Rate Hike

The US dollar and Treasury yields have been rising together following the Federal Reserve's interest rate hike. The Dollar Index (DXY), which measures the value of the dollar against six major currencies, jumped 0.6 points to 100.21 after the Fed's announcement, reaching a new high since July 31.

The upward trend continued with the DXY rising 0.7 points from the previous session to 100.32 as of 6:00 p.m. Scotiabank told Reuters that the swap market is reflecting over 0.90 percentage points of additional tightening through next summer, which is contributing to the dollar's strength.

The yield on the benchmark 10-year US Treasury note rose 0.031 percentage points to 5.027% around the close of regular trading at 5:00 p.m., matching its peak from the previous day. The 2-year Treasury yield, which reacts sensitively to monetary policy, rose 0.075 percentage points from the previous session to 4.736%, nearing its 52-week high.