Global bond selloff boosts dollar, pressures euro
TLT•The dollar rose to a 17-month high against the euro as a global bond selloff pushed US and European yields higher. The euro fell below $1.1215, while the dollar index recorded its sixth straight quarterly gain, its longest streak since 2022.
1. Dollar strengthens
The euro fell below $1.1215 for the first time since May 2025 and was last down 0.77% at $1.12433. It declined nearly 2.5% in September, its largest monthly drop since July 2025. The dollar index rose 0.51% after reaching its highest level since April 2025.
2. Yields hit highs
The US 10-year Treasury yield reached its highest level since 2002 before last trading down 5.65 basis points at 5.237%. French debt yields reached another 14-year high, while benchmark German debt also came under pressure. Global bonds had their largest monthly decline in years in September.
3. Other currencies weaken
Sterling fell 0.49% against the dollar, and the yen weakened 0.41% to 158.07 per dollar. The Australian dollar hit a three-month low of $0.69040 after domestic inflation came in below forecasts. Analysts cited concerns about government finances, energy prices and inflation as factors behind higher yields.
