The US Dollar Index has been on a strong rise since the release of strong inflation data, which revealed that the Consumer Price Index rebounded and rose above expectations at 3.5%, which greatly reduced the chances of a rate cut in June.
The US dollar index is now trading at 105.83 against a basket of currencies, up 0.8%, while gold prices are up 2.5% to $2,432.5 an ounce.
The U.S. government sold $22 billion of 30-year bonds on Thursday at a higher-than-expected yield after demand waned amid expectations that U.S. interest rates will rise for a longer period.
The bonds were awarded at 4.671%, below the pre-sale, or at-issue, rate of 4.661% seen before the 1 p.m. ET bid deadline. The 1 basis point decline comes as bets on a June rate cut have waned, keeping pressure on bond prices, which trade inversely to yields.
The bid-to-cover ratio, a measure of demand, for the auction was 2.37, down from 2.47 in the previous auction.
The 30-year Treasury yield traded at 4.657% following the news, below the day's high of 4.685%.
