The dollar index (DXY00) today is up +0.47%. The dollar is seeing support as the 10-year T-note rose +3.6 bp and the 30-year T-bond yield rose back above 5% for the first time in 1.5 months. The rise in Treasury yields supported the dollar's interest rate differentials.
Today's US CPI report generated some favorable initial media coverage as the June core CPI report of +0.2% m/m was slightly below expectations of +0.3%. However, there were some scattered signs of upside pressure from tariffs, and that pressure is expected to increase in the coming months. Also, both the headline and core CPI reports on a year-over-year basis rose from May.
