US dollar is advancing fast against its major trading counterparts. However underlying theme for Dollar's rise is speculation over US interest rate hike. So naturally at some point dollar would require support from yields, which need to rise to provide support.
- Today US will auction 2 year note at 17:00 GMT. Investors in prior auction has demanded average yield of 0.54%, about 16 basis points down from what investors asked in December. Two other auctions are scheduled for 3 months and 6 moths 15:30 GMT.
- US 2 year yield is trading at 0.64%, whereas 5 year is trading at 1.57%, 10 year at 2.19% and 30 year at 2.95%.
Expect dollar to remain well bid at corrections as US 2 year looks to be moving up once more.
Dollar index is currently trading at 97.1, up 0.75% for the day so far.


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