10 -year U.S. bond yields continued to rise by soaring to their latest 14 -month high ahead of the launch of an infrastructure spending plan by President Joe Biden on Wednesday.
The surge has prompted US dollar trading to rise higher against most major currencies with the dollar index strengthening at 93.10.
Details on Biden’s infrastructure plan will be released, and it is expected to also include plans for tax hikes that will certainly put pressure on stocks.
The prospect of higher debt issuances has triggered bond sales and this has boosted 10 -year bond yields above 1.70%.
The Japanese yen, which is sensitive to rising U.S. bond yields, plunged to a one -year low. The USD/JPY pair traded strongly above the 110.00 price level at the beginning of the European session.
While the euro also weakened around a 4 and a half month low against the US dollar.
Pressure from the resurgence of coronavirus cases to the point of forcing extended sanctions in Europe continues to put pressure on euro trading.
