Rising yields outweigh vaccine optimism
The great reopening trade isn't looking so positive at the moment.
AUD/USD is down 28 pips on the day to 0.7792, a session low. Earlier optimism has been replaced about rising yields and the 50% retracement of last week's rout has held the bounce.
Some of the worry is inflation and momentum higher in rates but gilt yields are also rising on surprisingly high issuance plans. UK 30s are now up more than 10 bps on the day.
Treasuries aren't far behind, up 7.2 bps in 10s.
