The DXY (U.S. Dollar Index) is a measure of the U.S. dollar’s value relative to a basket of six major foreign currencies: the euro (57.6%), Japanese yen (13.6%), British pound (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%), and Swiss franc (3.6%). It serves as a benchmark for the dollar’s global strength and is influenced by macroeconomic factors like interest rates, trade flows, and inflation expectations.
10 years bond yield Correlations with DXY
1. 10-Year Bond Yield
Positive Correlation: The DXY and U.S. 10-year Treasury yields generally move in the same direction. Higher yields attract foreign capital into U.S. bonds, increasing demand for dollars and strengthening the DXY.
Current 10-Year Yield (June 12, 2025): 4.36%, down slightly from 4.41% the previous day but up 1.16% year-over-year.
2. Bond Price
Inverse Relationship with Yields: Bond prices fall when yields rise (and vice versa). Since DXY and yields are positively correlated, the dollar tends to strengthen when bond prices decline.
3. Interest Rates
Direct Link: Higher U.S. interest rates increase the dollar’s appeal as investors seek higher returns, boosting DXY. Conversely, rate cuts weaken the dollar.
Example: The Federal Reserve’s rate hikes in 2023–2024 contributed to DXY strength, while recent rate-cut expectations have moderated its gains.
Current 10-Year Treasury Yield
As of June 12, 2025, the 10-year Treasury yield is 4.36%, below its long-term average of 5.83%.
Key Drivers of DXY in 2025
Federal Reserve Policy: Markets are pricing in potential rate cuts later in 2025, which could limit DXY upside.
Global Risk Sentiment: Safe-haven dollar demand rises during geopolitical or economic uncertainty.
Inflation Trends: Persistent U.S. inflation could delay Fed easing, supporting DXY
technical level to watch is the support level at 97,949
10 years bond yield Correlations with DXY
1. 10-Year Bond Yield
Positive Correlation: The DXY and U.S. 10-year Treasury yields generally move in the same direction. Higher yields attract foreign capital into U.S. bonds, increasing demand for dollars and strengthening the DXY.
Current 10-Year Yield (June 12, 2025): 4.36%, down slightly from 4.41% the previous day but up 1.16% year-over-year.
2. Bond Price
Inverse Relationship with Yields: Bond prices fall when yields rise (and vice versa). Since DXY and yields are positively correlated, the dollar tends to strengthen when bond prices decline.
3. Interest Rates
Direct Link: Higher U.S. interest rates increase the dollar’s appeal as investors seek higher returns, boosting DXY. Conversely, rate cuts weaken the dollar.
Example: The Federal Reserve’s rate hikes in 2023–2024 contributed to DXY strength, while recent rate-cut expectations have moderated its gains.
Current 10-Year Treasury Yield
As of June 12, 2025, the 10-year Treasury yield is 4.36%, below its long-term average of 5.83%.
Key Drivers of DXY in 2025
Federal Reserve Policy: Markets are pricing in potential rate cuts later in 2025, which could limit DXY upside.
Global Risk Sentiment: Safe-haven dollar demand rises during geopolitical or economic uncertainty.
Inflation Trends: Persistent U.S. inflation could delay Fed easing, supporting DXY
technical level to watch is the support level at 97,949
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.