Slower private payroll growth and Williams’ comments on easing inflation added to the decline, though September Fed hike odds remain near two-thirds. The pause in oil’s rally also reduced demand for the dollar as a haven.

Japan’s 10-year yield fell to 2.96%, retreating from 30-year highs as the yen rally reduced pressure for aggressive BOJ tightening and US Treasury yields eased. Still, BOJ’s Takata floated outsized or back-to-back hikes, while Governor Ueda signaled a likely increase this month, citing upside inflation risks.

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