GBP/USD marches towards 1.3100 on falling yields, UK announces new sanctions on Russia

• GBP/USD is scaling higher amid falling US Treasury yields.
• In coordination with the US, the UK has announced fresh sanctions on Russia.
•  Investors are shrugging off the impact of an aggressive tightening policy by the Fed.

The GBP/USD pair has rebounded sharply after hitting a low of 1.3048 on Wednesday. The cable is trading mildly positive on Thursday after the US Treasury yields lose steam. The 10-year benchmark US Treasury yields have fallen sharply after registering a fresh three-year high at 2.66%.

It seems that the market participants are shrugging off the impact of the hawkish stance from the Federal Reserve (Fed), which is likely to be revealed in May’s monetary policy. The minutes of March’s Federal Open Market Committee (FOMC) released on Wednesday have dictated that the Fed is looking to hike the interest rates by 50 basis points once or more this year. To contain the inflation mess, the Fed is left with no other option than to paddle the lending rates. Apart from that, a sheer balance sheet reduction will start from May in which $60B for Treasury securities, and $35B for mortgage-backed securities (MBS) will be reduced monthly.

Following the footprints of the US, the UK has announced fresh sanctions on Russia after its war crimes in Bucha, Ukraine. The UK administration has imposed an outright ban on all new outward investment into the country, reported Reuters. Adding to that, the UK has also announced an asset freeze on Russia's Sberbank and Credit Bank of Moscow, which hold more than one-third of Russia's total banking assets.