The US dollar has lost grounds vs the majors at the Asian trading on Tuesday. The negative dynamics are related to a sharp decline in US Treasuries yield.
According to today's data, the gap between 2Y and 10Y state bonds has decreased by 4 basis points, to 0.16 p.p., which is the lowest level since July 2017. Specifically, the yield of 10Y state bonds plunged to 2.97%, the bottom since mid-September, which is said to be related to lower expectations regarding the interest rate revision in the USA next year. Usually, the yield changes are followed by the economic recession. At the same time, it can take from six to 24 months from such signs till the real economic downturn.
The ICE index decreased by some 0.3% at the Tuesday trading.
The euro-to-US dollar exchange rate was recorded at 1.1398, while the previous session was closed near $1.1354.
The sterling also got stronger vs the greenback, reaching some $1.2813.
As for the Japanese yen, the US dollar decreased to some $112.80 (113.66 earlier). Meanwhile, the euro-to-yen rate was at some 128.77 (129.03 yesterday).
Following some positive progress in the US-China trade issue, as the parties managed to agree on some break, the yuan improved against the American currency to some $1 = CNY 6.8422.