GBP Plummets as US Yields Hit Fresh High

The British Pound (GBP) has continued its decline against the US Dollar (USD), falling to near 1.3225 during the European trading session on Thursday.

This downward trend is largely due to the rallying US Treasury Yields, which have reached a fresh 19-year high of 5.15% in the 10-year sector.

The surge in US Treasury Yields has strengthened the USD and put additional pressure on the GBP/USD pair.

According to the CME FedWatch tool, there is an almost 55% chance that the Federal Reserve (Fed) will hike interest rates in both remaining policy meetings this year, further contributing to the rally in US Treasury Yields.