Dollar Rallies Broadly as US Yields Soar to 22-Year High

The US dollar gained strength against major currencies on the 29th, as the 30-year yield climbed to its highest level in roughly 22 years. This sent EUR/USD plummeting to a fresh year-to-date low of $1.1312 per euro, down approximately 0.0026 dollars from the prior day's close.

The benchmark 10-year yield also rose above 5.28%, fueling dollar buying and causing other major currencies to fall. The British pound fell to its lowest level since late June, trading at $1.3202, while the Australian dollar extended losses to $0.6966, its weakest since July 30.

The US Treasury market saw no new selling catalysts, but rising yields suggest that investors may be adjusting their outlook on Federal Reserve monetary policy. The fact that the 30-year yield reached levels not seen since 2002 points to structural factors at play, including fiscal concerns and shifting inflation expectations.