US Treasury yields rise, creating economic challenges for Dominican Republic

Rising US Treasury yields and global market uncertainty are creating economic challenges for the Dominican Republic. The Central Bank of the Dominican Republic reported that 10-year Treasury yields rose from 4.17% at the start of the year to 4.84% by early September, while 30-year yields reached levels not seen since 2007.

These increases are driven by geopolitical tensions, particularly involving Iran, and rising oil prices, which have heightened inflationary risks and reduced expectations for monetary easing. Consequently, central banks are adopting more cautious stances regarding interest rate reductions.

For the Dominican Republic, the end of the era of cheap money poses risks to fiscal management. While much of the country's existing external debt is at fixed rates, rising US interest rates increase the cost of refinancing maturing debt and securing new financing. As of July, the Dominican Republic's non-financial public sector debt stood at US$67,828 million, or 48.2% of GDP.

In the local currency market, the US dollar was reported at a purchase rate of 58.63 Dominican pesos and a sale rate of 58.96 pesos as of September 10, 2026.