USD Rallies as US Treasury Yields Hit New Session Highs Across Curve

The US dollar is strengthening broadly as Treasury yields push to new session highs across the entire yield curve, providing fundamental support for the greenback. The 2-year yield has risen 4.5 basis points to 4.216%, the 5-year is up 4.3 bps to 4.316%, the 10-year has climbed 4.1 bps to 4.581%, and the 30-year has advanced 3.2 bps to 5.096%. The 2-year yield bounced from Friday's low of 4.11%, and has now reclaimed technically significant levels, trading back above both its 100-hour and 200-hour moving averages near 4.187%. The broad-based rise in yields suggests markets are repricing rate expectations, potentially pushing back the timeline for Federal Reserve rate cuts. The yield curve dynamics, with the front end leading the move higher, indicate strengthening near-term rate expectations. Dollar bulls are finding reinforcement from these yield movements, putting pressure on major counterparts including the euro, pound, and yen. Traders should monitor whether yields sustain above these moving average levels for continued USD momentum.