Bond yields mirrored the dollar's strength, with the 10-year Treasury yield climbing to 4.629% before easing slightly to 4.594%. This marks the highest level since May, reinforcing expectations that the Fed's outlook will keep upward pressure on yields into early 2025. The shorter-term 2-year yield remained steady at 4.341%, reflecting a flatter curve as rate cut expectations pull back.

With Christmas approaching and trading volumes thinning, forex markets may drift in the coming days. However, analysts suggest the dollar's momentum will likely persist into the new year. The key driver remains the interest rate differential between the U.S. and other major economies.