US five-year treasury yield hits 3 month high of 4.024%. USDJPY moves to new highs. | Forexlive

The US 5-year yield is trading at 4.02% up 10.3 basis points on the day. The high yield reached 4.024%. That extended above the May 2023 high of 3.99% and took the yield to the highest level since March 9.

The low yield today was down at 3.818% after the CPI data, but at the low, the yield tested the rising 200-day moving average of 3.817% and found support against that moving average level. That gave traders the go-ahead to push the yield to the upside.

The move higher comes despite a successful 30-year bond auction where the treasury auctioned off $18 billion with a negative tail of -1.1 basis points. The 3 and 10-year note auctions earlier this week were not as successful.

Looking at the daily chart, the low yield for the year came in at 3.204% back on May 4. The high yield was at 4.376% on March 8. The move to the upside today also comes despite expectations that the Fed will not increase rates tomorrow. Nevertheless, with the Fed funds target at 5.25%, the 5-year yield at 4.02% is still well below that target level. However looking at it with regard to CPI inflation, the year-on-year CPI today reached 4.0% not far from the current 5-year yield. It has been a while since the 5-year yield has been equal to the year-on-year inflation rate.

The move to higher yields is also helped to push the US dollar off low levels (see the hourly chart below).