Treasury yields have gone up as the dollar's value has actually weakened as normally you'd expect as Treasury yields go up, that the dollar would strengthen because there would be more demand for American assets.
for - why - increase in treasury yields normally strengthens US Dollar - Gemini AI gives a good explanation - Yes, it's generally expected that when U.S. Treasury yields increase, the value of the US dollar will strengthen. - This is because higher yields attract more foreign investment, increasing demand for the dollar to purchase those assets. - Higher yields ( higher interest rate) mean more attractive returns: - When Treasury yields rise, the returns on U.S. government bonds become more appealing to investors, both domestic and foreign. - Increased demand for US dollars: - As investors from other countries seek to buy these higher-yielding U.S. assets, they need to first convert their local currencies into US dollars to make the purchase. - This increased demand for dollars strengthens its value. - Safe-haven status: - During times of economic uncertainty, investors often flock to safe-haven assets like U.S. Treasuries. This further boosts the demand for the US dollar, as it is the currency used to hold these assets. - Currency Valuation - A strong currency indicates a healthy economy and can attract more foreign investment. This creates a positive feedback loop, as a stronger dollar can further boost investor confidence and lead to even higher demand for US assets.