On the day when the new Treasury Secretary of the US made his most forceful defense of the dollar, the greenback has broken to its lows for the year. Not a vote of confidence as traders anticipate a mountain of debt offerings to continue pushing up Treasury yields at a time when US creditworthiness has been called into question.
10 year note yields are up nearly 20 bp on the day, now at 3.36% in the 10-year benchmark. EUR/USD trades at 1.3920, USD/JPY at 94.05 and cable at 1.5875. US stocks are 2.4% lower on the day.
