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The FED controls the Over Night lending rate that banks get..The FED would like rates to be a bit higher but are stymied by a weak economy.

Market forces determine Treasuries as buyers bid on Treasuries to purchase. There has been massive inflows of capital into the US essentially since 09 as a flight to quality and safe haven in a sea of global uncertainty. The same has been true of USD strength.

The benchmark rate to watch is the 10 year note which is as I write is 2.23%. The low on the 10 yr was apx 1.47% in 2016 which reflects extreme pessimism in the Global economy. At 2.23% one can not consider it to be optimism.


Trump said the USD was too strong...and after he said that it fell off a cliff.

The real reason is political turmoil in the US along with weak US economic data. So capital is now moving off shore as the US isn't being seen as being as safe as it was. While the EU Central bank is expected to tighten interest rates due to a strengthening economy. EU economic data is the big reason why the USD rallied in 2014 and now that the EU is doing better the tide is going out on the USD.

As far as one can see it is ebb and flow of valuation.