EUR/USD Pressured as 10-Year Yield Spikes to 5%
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The dollar found fresh support as the 10-year Treasury yield briefly touched 5% on Monday, its highest since 2007, driven by rising oil prices and pre-Fed positioning. Higher yields typically widen the rate differential in favor of the greenback, pressuring EUR/USD lower as capital flows chase superior US fixed-income returns.
For euro bulls, this yield surge complicates the near-term outlook. Unless the ECB signals a hawkish counter-response, EUR/USD risks drifting toward recent support zones as the yield-driven dollar bid persists into the Fed meeting.