Dollar at three-month low as Treasury moves to soothe bond jitters
The move aims to steady a selloff that drove the 30-year Treasury yield to 5.337% and sent the dollar near three-month lows.
- 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.
19 Articles
19 Articles
Understand what makes the dollar price rise or fall The dollar opened the session this Thursday (20) high, with an advance of 0.33% close to 9h10, quoted at R$ 5,1933. Already the negotiations of the Ibovespa, the main index of the Brazilian stock exchange, start at 10h. . has some suggestion of reportage? Send to the g1 . . . The announcement of buyback of public titles (Treasuries) by the American Treasury follows on the radar of the markets. …
The dollar lost 0.86% against the euro on Wednesday, August 19, to reach $1,1675 for a euro. A fall can be explained by the announcement of a larger share of long-term bond buybacks of US debt, linked to the increase in yields. The US currency also sold 0.57% to the pound sterling and 1.84% to the Swiss franc.
Dollar falls to three-month low as Treasury moves to soothe bond jitters
LONDON, Aug 20 : The U.S. dollar was pinned near a three-month low on Thursday after the Treasury Department moved to calm a bond market selloff that had pushed long-end yields to their highest since 2007, lifting risk sentiment and undercutting the currency. The dollar index, which measures the dollar a
The dollar suffered sharp losses on Thursday, nearing its lowest level in three months, as the US currency weakened against several major currencies. The dollar index, which measures the greenback against six major currencies, stood at 98.938, close to its lowest point since mid-May. The euro was steady at $1.1676, near its highest level since late May, while the yen traded at 158.32 against the dollar. Sterling was also steady at $1.3603, and t…
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