The dollar and Treasury yields gained for a second day as investors continue to dial up strength of a July hike after Friday's jobs data.
Bloomberg Dollar Spot Index gained as much as 0.2%. Aussie saw long liquidations ahead of Tuesday's RBA decision, only to trim losses after a better-than-expected China services PMI print, while Gotobi (importer) flows had the yen extending Friday's selloff, according to Asia-based FX traders.
Bond traders boosted expectations for one more Federal Reserve interest-rate hike in reaction to the latest jobs report, and are anticipating that the increase will most likely come in July.
Bloomberg Dollar Spot Index up 0.1% and oil added 1%. AUD/USD rose 0.7% to 0.6615. USD/JPY advanced 0.2% to 140.22.
Yield on 2-year Treasury rose 4.5bps to 4.54% while yield on 10-year added 3bps to 3.72%.
Source : Bloomberg
