Dollar holds advantage over low-yielders, A$ looks to RBA

Dollar holds advantage over low-yielders, A$ looks to RBA

The common currency was under pressure as top officials from the European Central Bank sounded alarm over rises in bond yields.President Christine Lagarde said on Monday the ECB will prevent a premature increase in borrowing costs for firms and households.  Policymaker Francois Villeroy de Galhau was even more explicit, saying some of the recent rises in bond yields were unwarranted and that the ECB must push back using the flexibility embedded in its bond purchase programme.  Traders were quick to sense the marked difference in tone between the ECB and the Federal Reserve.Richmond Federal Reserve President Thomas Barkin said on Monday the uptick in long-term bond yields so far seems to suggest an adjustment to stronger growth and inflation outlook.  Atlanta Fed President Raphael Bostic said last week that bond yields remain comparatively low, while Federal Reserve Chair Jerome Powell has also shown no undue concerns about rising bond yields.  "Central banks continue to take diverging views on the signals sent by the recent rise in yields. The U.S. Fed is taking it as a positive signal," Tapas Strickland, director of economics and markets at National Australian Bank in Sydney, said in a note.The U.S. economic recovery is also seen