LONDONTOKYO, May 30 Reuters The dollar held steady on Thursday after rising to a twoweek high as a rout in U.S. Treasuries pushed up yields, boosting the currency39;s allure.

The index tracking the U.S. currency against its major peers climbed to 105.18 overnight, the highest since May 14, and was slightly lower at 105.05 in early European trading.

A twoday, 15basis point jump above 4.6 for longterm Treasury yields helped push the dollar higher. The rise in yields, which move inversely to prices, has been driven by a spate of strongerthanexpected data, tough words from Federal Reserve officials, and a run of poorly received bond auctions.

The euro suffered as U.S. yields rose, dropping 0.5 on Tuesday to touch a twoweek low of 1.0789 overnight before bouncing somewhat to 1.0806.

If you look at eurodollar volatility its exceptionally low, said Chris Turner, head of global markets at ING. Its going to need some big new input to break eurodollar out of recent ranges. So by recent standards yesterdays 0.5 move was quite large.

People will today be keeping an eye on the bond market to see if theres any further selloff, Turner added, saying the solid demand for a Japanese government bond auction could help steady global debt on Thursday.

The yen was the biggest mover on Thursday morning in Europe, with the dollar down 0.4 against the Japanese currency at 157.08 after hitting a onemonth high of 157.72 the previous day.

Charu Chanana, head of FX strategy at Saxo Bank,…