Dollar at three-month low as Treasury moves to soothe bond jitters
Treasury buybacks and shorter-term borrowing eased bond-market pressure, with the 30-year yield hitting 5.337% and investors pushing the dollar to a three-month low.
- On Thursday, the U.S. Treasury Department unveiled plans to double liquidity support buyback operations for longer-dated bonds after a steep selloff pushed the 30-year Treasury yield to a 19-year high of 5.337%.
- Investors have been grappling with a sharp bond market selloff across the U.S., Europe, and Japan amid mounting concern about soaring government debt and higher oil prices from the ongoing U.S.-Israeli war on Iran.
- The dollar index fell to 98.938, its lowest level since mid-May. Brian Jacobsen, chief economic strategist at Annex Wealth Management, called the move a 'temporary salve' showing "we're in an era of fiscal dominance."
- Yields dropped 9 basis points to 5.184% following the announcement. Chris Turner, ING global head of markets, said the move signals "Washington is prepared to lean against rising term premia" rather than formal quantitative easing.
- Minutes from the Federal Reserve's meeting last month showed policymakers remain focused on inflation, with officials stating that interest rate hikes would be necessary if inflation does not decline to the central bank's 2% target.
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The dollar fell to a three-month low amid US government bond buyback fears The dollar weakened to a three-month low against the euro amid US plans to increase government bond redemptions. The euro rose to $1.1711.
(New York = Yonhap News) Reporter Lim Soo-jung = U.S. Treasury Secretary Scott Besant's aggressive market intervention to curb soaring bond yields will ultimately [damage] the value and confidence of the dollar...
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Dollar sinks as investors flock to gold, crypto after Bessent’s Treasury buyback move
Dollar sinks as investors flock to gold, crypto after Bessent’s Treasury buyback move Click this link for the original source of this article. Author: Daily Caller This content is courtesy of, and owned and copyrighted by, https://www.offthepress.com and its author. This content is made available by use of the public RSS feed offered by the...
U.S. dollar wobbles as Treasury’s bond market buybacks raise fresh concerns
The dollar slipped on Friday and was set to end a bumpy week lower, as investors questioned whether the U.S. Treasury’s efforts to calm the bond markets might end up undermining confidence in the currency.
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