Euro under pressure after another jump in US bonds

Euro fell in European trade against dollar for third straight session under pressure from a new jump in US treasury yields, bolstering dollar purchases.

EUR/USD fell 0.2% to 1.1385, with an intraday high at 1.1421, after closing down 0.1% yesterday, the second loss in a row on profit-taking away from 1.1482.

The dollar index rose 0.2% on Tuesday for the third straight session against a basket of major rivals. 

Dollar's gains came as US treasury yields continue to rally amid estimates of an interest rate hike by the Fed next March, leading to four overall hikes in 2022. 

US 10-year treasury yields rose 2.1%, the third such gain in a row, marking two-year high at 1.856% while analysts expect it to reach 2% soon.

This development in the bonds market renewed concerns regarding the widening gulf between US and European treasury yields, as the European Central Bank continues to support ultra easy policies.