Dollar Swings Finally Start to Ripple Through Treasury Market

Sharp swings in the dollar are starting to seep into the Treasury bond market, a warning sign that a weak greenback has the potential to push interest rates higher.

In late US trading on Tuesday and again Wednesday, swings in the value of the dollar drew reaction from the government bond market. That came in stark contrast to its indifference over the previous week as the Bloomberg dollar index fell more than 2.5% to the lowest level in nearly three years.