Dollar, Treasury Yields Jump As Dudley Sees Stronger Case For Raising Rates

The dollar and Treasury yields rose on Tuesday after New York Fed President William Dudley said during an interview with CNN that the case for raising interest rates has become more compelling. the yield on the two-year Treasury note , typically the most sensitive to shifts in rate-hike expectations, rose as much as six basis points to 1.260% following Dudley's comments. The yield on the 10-year note saw a more modest increase, rising 2.4 basis points to 2.389%. The dollar strengthened to 112.73 yen, compared with 112.31 yen earlier in the session. The euro , meanwhile, dropped to $1.0578, compared with $1.0594. Stock futures remained relatively steady, with futures for the S&P 500 were relatively steady at 2,362.25.