Dollar Soars as US Treasury Yields Reach Multi-Year Highs

The US dollar strengthened against major peers on Tuesday as global bond selloffs pushed long-dated U.S. Treasury yields to multi-year highs.

The 30-year yield briefly reached its loftiest level since 2007, touching 5.3371% before retreating more than 2 basis points to around 5.28%. The benchmark 10-year yield touched 4.7478%, the highest since January of last year, then retreated nearly 2 basis points to hover near the 4.7% level.

The dollar index rose over 0.1% to 99.66 in late New York trading, while the euro slipped less than 0.1% to $1.1574 after pulling back from a two-month high touched the previous day. Sterling fell nearly 0.1% to $1.3531, and the dollar edged up more than 0.1% against the yen to 159.64.

Market participants were positioning ahead of the release of minutes from the Federal Reserve's most recent policy meeting, while monitoring developments in the Middle East that have contributed to the rise in energy prices.