US dollar under pressure

US 10 year yields

US 10-year yields are down 10 basis points today with the entire curve moving down.

It reflects fear about the new covid variant after the comments from Moderna's CEO saying the vaccine might not be effective.

The market is pricing out Fed rate hikes and it's particularly troublesome for USD/JPY. That pair is through the November lows and at the worst levels of the day and without much support below.


What's interesting is that -- despite all the fear -- NZD and AUD are both about where they were when the omicron fears kicked off.