USD/JPY renews weekly lows near 109.60 amid slumping US T-bond yields
|- USD/JPY extends its daily slide during the American session.
- 10-year US Treasury bond yield is down more than 4%.
- Wall Street's main indexes are suffering heavy losses on Tuesday.
After closing in the negative territory on Monday, the USD/JPY pair failed to stage a rebound and remains depressed in the second half of the day on Tuesday. As of writing, the pair was trading at a fresh weekly low of 109.62, losing 0.65% on a daily basis.
Safe-haven flows drag US T-bond yields lower
The negative shift witnessed in the market sentiment in the second half of the day is providing a boost to the JPY. Reflecting the risk-averse market environment, the S&P 500 and the Nasdaq Composite indexes are down 1.1% and 2.2%, respectively.
Meanwhile, the greenback remains on the back foot as the benchmark 10-year US Treasury bond yield is losing more than 4% on the day. Currently, the US Dollar Index is down 0.3% at 92.35.
Earlier in the day, the data from the US showed that Durable Goods Orders rose by 0.8% on a monthly basis in June, missing the market expectation for an increase of 2.1%. However, the market reaction to this data was largely muted ahead of the FOMC's policy announcements on Wednesday's.
Previewing the Fed's July meeting, "the Fed is set to hold firm with its bond-buying scheme and push back against any imminent tightening," said FXStreet analyst Yohay Elam. "The lack of action by the Fed does not mean stability in currency markets – printing more dollars for longer means a weaker greenback."
Federal Reserve Preview: Three reasons why Powell could pause, pummeling the dollar.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.