0853 GMT - Increasing expectations that the Federal Reserve will increase interest rates further underpin the strength of the dollar and push Treasury yields higher, DHF Capital S.A's Bas Kooijman says in a note. Flash estimate purchasing managers data on Wednesday showing U.S. activity accelerated in September, combined with persistent pressure from elevated energy prices and pressure on input prices, strengthened the case for further monetary policy tightening, he says. "This was also reinforced by Fed officials," he says. Fed Governor Michael Barr said Wednesday further rate increases are likely needed to ensure inflation comes down to target in a timely fashion. The DXY dollar index falls 0.1% to 101.004. The 10-year Treasury yield rises to its highest since 2007 at 5.148%, according to Tradeweb.