The US dollar is surging

Photo: Getty Images.

US bond yields are continuing to ratchet higher in Asia on Monday, and it’s lit a fire under the US dollar which is rallying hard across the board.

Donald Trump’s pro-growth stimulus plans, even before specific detail is known, is creating a massive re-think across financial markets.

The yield on the benchmark 10-year US note currently sits at 2.19%, well above the 2.12% closing level seen last Thursday before bond markets closed for the Veterans Day holiday.

Earlier in the session yields hit as high as 2.203%, a level not seen since January 8 this year.

US 10-Year Note Yield Daily Chart

The move in US yields has seen the dollar rip higher in response with the US dollar index — dominated by heavy weightings for the euro and Japanese yen — now up over 0.5% for the session at 99.578.

That level has not been seen since February 1st this year.

US Dollar Index Daily Chart

On Monday alone, the US dollar has gained 0.8% against the Japanese yen and 0.7% against the euro.

The Chinese yuan has also weakened substantially with the USD/CNY trading up to 6.8179, yet another six-year high.

From the March quarter in 2014, the US dollar has now strengthened by close to 13% against the yuan.

Gold is also getting thumped, dropping to as low as $US1,214 an ounce, a fresh six-month low.

Other major currencies such as the Australian, Canadian and New Zealand dollars are also under pressure, albeit to a lesser degree.

NOW READ: GUNDLACH: US bond rates could hit 6%, but he’s not sure what to think about stocks right now

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