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The US dollar continues to fall against the Japanese yen for the second trading day in a row, which came on Wednesday after the markets weighed in on expectations that the Federal Reserve could likely start cutting interest rates after ensuring that inflation is duly contained based upon robust data.
Treasury yields are in direct correlation with the USD/JPY pair, therefore; the pair followed on the footsteps of yields’ recent decline that was a result of Fed Chair’s testimony before the Congress.
Ten-year US Treasury bond yields fell to 4.108%, compared to the last daily close, which recorded 4.155%. Returns rose to their highest level on the current trading day at 4.174%, compared to the lowest level recorded at 4.083%.
US sovereign bond yields are affected by any mention of the possibility of a rate cut, which is what happened on Wednesday after investors in the markets began to digest Powell’s statements.
The USD/JPY fell to the level of 149.39, compared to the previous daily close, which recorded 150.39. The pair rose to its highest level on the trading day on Wednesday at 150.00, compared to the lowest level at 149.00.
