Part 4/10:
The dollar's recent decline coincided with troubling economic data, notably a poor US manufacturing report. The Purchasing Managers' Index (PMI) for May was at 48.5, well below the neutral 50, indicating contraction and ongoing industrial weakness. Such data is often attributed to persistent trade tensions, which continue to hinder American industry.
In response, US Treasury bond yields have risen—30-year bond yields edged up to nearly 5%, rising by 0.03 percentage points. This inverse relationship indicates that investors are demanding higher returns due to increased perceived risk—a warning sign for US fiscal stability.