Strong two and five-year note auctions so far this week seem to have alleviated some of the debt-funding concerns of the US but they have not stopped the trend toward rising long-term interest rates. 10-year yields are at 3.61% this afternoon. If yields are rising for the “right” reasons like expectations for future growth potentially stoking inflation, that’s a good thing for the greenback.
EUR/USD has eased back below the 1.3900 levle and trades now at 1.3890.
