Dollar decline continues as US T-yields collapse to multi-month lows

• US Treasury yields collapse amid exacerbated fears about a global economic downturn.
• DXY down to fresh weekly lows, after reaching a multi-month high of 98.38.

The American dollar took another dive with the DXY down to 97.80, a fresh weekly low, and as US Treasury yields collapsed, with the 10-year note yield currently at 2.29%. The usual concerns about a global economic downturn spurred by US-China tensions were exacerbated this Thursday by Markit May preliminary estimates, showing that growth in business activity slowed sharply both in the EU and the US.

In the EU, the preliminary May Markit PMI came in below the market's expectations, printing 47.7, while the German index fell to 44.3. The services PMI for both economies also contracted, down to 55.00 and 52.5, respectively. Additionally, Germany released the IFO Business Climate for May, which declined to 97.9 from 99.2, amid a sharp slide in the assessment of the current situation. The US May preliminary Manufacturing PMI fell to 50.6, its lowest in almost ten years, while the Services Index fell to 50.9 its lowest in 36 months.