The dollar started trade on Monday at its highest in over five years against a basket of major currencies, having rallied hard late last week on the back of a surprisingly robust U.S. employment report.
The surge in payrolls by 321,000 in November easily blew past Wall Street’s expectations and served to further highlight the divergence in economic outlook between the United States and most of the developed world.
Short-term Treasury yields shot higher, widening the premium paid by U.S. two-year paper to 65 basis points over bunds and near the widest since early 2007.
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