Dollar Index Rises; 10-yr Yield Eases to 4.29% Now

The U.S. dollar strengthened modestly on Friday while benchmark Treasury yields retraced recent gains. Traders are parsing currency flows, prospects for Federal Reserve policy and incoming economic data as the week closes.

Dollar Index update

DXY intraday move

The Dollar Index (DXY) traded around 98.7, up roughly 0.1% on the day and on track for its best week in nearly a year. The lift came amid broad weakness in the yen and demand for safe, liquid dollar assets.

What’s driving the dollar

Short-term drivers include currency flows tied to central bank differentials and risk sentiment; a softer yen amplified dollar gains. Expectations for the Fed’s path on rates remain central, with traders weighing incoming inflation and payrolls data for clues on rate adjustments.

U.S. Treasury yields and bond index snapshot

10-year and 2-year yields

The 10-year Treasury yield eased to about 4.29%, down roughly 4 basis points from the prior close, while the 2-year yield was near 3.66%. The pullback in longer-term yields reflects a mix of profit-taking after recent rises and renewed demand for duration ahead of key economic releases.

Aggregate bond ETF (AGG) and broad fixed‑income view

The iShares Core U.S. Aggregate Bond ETF (AGG), a common proxy for the Bloomberg U.S. Aggregate, last traded around $100.13. Prices in broad investment‑grade fixed‑income instruments have been sensitive to shifting rate expectations and supply from Treasury issuance.

What to watch next

Keep an eye on U.S. CPI and payrolls data, Fed commentary, and currency moves in the yen. These will influence rate expectations, dollar direction and demand for Treasuries and aggregate bond instruments in the near term.

Note: Prices cited are approximate intraday levels and ETF closes; consult live feeds for real-time quotes before trading.