Dollar Holds Near 13-Month High as 20% Fed Hike Odds Lift Treasury Yields Above 4.6%
Updated
Updated · CNBC · Jul 14
Dollar Holds Near 13-Month High as 20% Fed Hike Odds Lift Treasury Yields Above 4.6%
3 articles · Updated · CNBC · Jul 14
Summary
U.S. Treasury yields climbed above 4.6%—their highest since May—as traders priced a 20% chance of a July Fed rate hike, keeping the dollar near 13-month highs.
Oil near $90 a barrel sharpened the inflation focus after U.S. and Iranian forces traded attacks in the Gulf and traffic through the Strait of Hormuz slowed to a near-standstill.
Kevin Warsh faces his first semiannual testimony to Congress with June CPI due, while Governor Christopher Waller said rates may need to rise soon if inflation stays well above the Fed's 2% target.
Economists expect June headline inflation at 3.8% and core inflation at 2.8%; overnight euro volatility briefly topped 10% as traders rushed to hedge currency swings.
The yen edged up to 162.27 per dollar but stayed near 40-year lows, leaving markets alert for possible Tokyo support and any pension-allocation changes that could boost domestic asset buying.