US 10-year yield clocks 4.5-month high

The US 10-year treasury yield jumped to multi-month highs on Wednesday, extending a four-day rising trend. 

The yield rose to 0.80%, the highest level since June 10, representing an 11 basis point gain on the low of 0.69% observed on Oct. 15, according to data source TradingView. 

The US fiscal largesse looks to be putting upward pressure on yields. The nation's budget gap tripled to a record high of $3.1 trillion in the year ended Sept. 30 as the government rolled out stimulus programs to counter the coronavirus-induced economic slowdown. 

Besides, with the US planning to deliver additional stimulus soon, the budget gap will widen further. As such, yields could continue to rise and potentially attract bids for the US dollar. 

That said, so far, the dollar has struggled to cheer the recent rise in yields. The dollar index, which tracks the greenback's value against majors, is currently trading at 92.99, the lowest level since Sept. 21.