Declining yields incite USD selloff

The dollar sold off on Wednesday pushed lower by falling US Treasury yields. The market mood was depressing throughout most of the day.

Yields were weaker ever since the day started, but accelerated their slump following the release of US inflation data. The September Consumer Price Index was upwardly revised to 5.4% YoY from a previous estimate of 5.3%, while the core annual reading was confirmed at 4%.

As expected, FOMC minutes have showed that policymakers are ready to begin tapering, a gradual reduction in the pace of asset purchases, aiming to end it in mid 2022.

Wall Street struggled to advance, with the three majors indexes closing mixed around their opening levels. JP Morgan announced upbeat third-quarter earnings, reporting profits of $11.7 billion.