Treasury Yields and Banking Woes affects USD

USD

The US Dollar experienced another softening today after a selloff to finish last week with the doubt about the banking sector continuing to be evaluated by markets.

It is stated that First Citizen Bank closed a deal to obtain SVB Financial.

The Federal Deposit Insurance Corporation (FDIC) website announced that “The 17 former branches of Silicon Valley Bridge Bank, National Association, will open as First–Citizens Bank & Trust Company on Monday, March 27, 2023.”

The news may help in reducing some concerns, but today the market will be eyeing Deutsche Bank’s share price after experiencing a hammering on Friday on worries that they too could be vulnerable to compressing financial conditions.

Treasury yields are a bit moved across most of the curve after Friday’s push lower. The benchmark 2-year note is trading near 3.80%, having produced almost 5.10% a few weeks ago. It’s notable that it was below 2.40% at this time last year.

The 1-year bond tried to include some basis points today as markets fluctuate about the trajectory of the Fed’s rate path.

The overall slide lower in Treasury yields seems to have undermined the DXY (USD) index.

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