Rising yields underpin a bounce in the dollar

US Treasury yields are at the highs of the day across the curve on a small jump in the past 15 minutes. US 10s are now up 1 bps on the day to 4.28% after falling as low as 4.20% earlier.

It’s not clear what the catalyst is because there are conflicting Middle East reports with Lebanon’s PM says they’re hoping for a ceasefire within hours or days and another saying Iran will launch an attack on Israel before the US election.

In any case, there has been a quick move higher in the US dollar in the range of 10-20 pips across the board.

Update: I think a Quinnipiac poll showing Trump leading in Pennsylvania might have also influenced this move.

This article was written by Adam Button at www.forexlive.com.