10-year yields down to a fresh record low under 0.80%
The key question at this point is, how low can you go?
10-year yields have hit a fresh record low of 0.787% to start the European morning as the risk selloff continues. In turn, that is dragging the dollar lower on the day as the greenback sinks against the rest of the major currencies bloc.
USD/JPY is down to 105.70 while NZD/USD has extended gains to nearly 1% on the day.
At the end of last year, everyone was still talking about how the dollar is the "cleanest shirt among a dirty pile" and ~2% yields was a key reason for that. Now, all of that has gone out the window - and fast - with the yields erosion all but killing the dollar carry.
In any case, look out in Europe too as we are close to seeing 10-year Bund yields also post a fresh record low soon:
