US Yields Surge, Pushing Dollar to 10-Month High and Yen Lower

The US dollar remains at a 10-month high against major currencies, supported by rising US bond yields, which have reached their highest level in 16 years. Resilient economic data, hawkish Federal Reserve rhetoric, and a budget deficit to be financed by borrowing have contributed to the increase in Treasury yields. The euro and sterling have both experienced losses, with the euro on track for its worst quarterly percentage loss in a year. The yen has also weakened, approaching the 150-per-dollar mark, which could trigger intervention from the Japanese finance ministry. Rising commodity prices have provided some support to antipodean currencies, while the Chinese yuan remains close to the weak end of its trading band.