Dollar Hugs Three-Month Lows as Treasury Seeks to Sooth the Bond Market
The Treasury move eased long-term yields and pushed the dollar index to 98.938, its lowest level since mid-May, traders said.
- 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.
11 Articles
11 Articles
Dollar at Three-Month Lows as Treasury Buybacks Aim to Curb Surging Long-Term Bond Yields
SINGAPORE: The U.S. dollar stood at three-month lows on Thursday after the Treasury Department moved to calm a bond market rout that had pushed long-end yieldsto their highest since 2007, sapping support for the greenback.The dollar index, which measures the U.S. currency against six other units, was at 98.813, around its lowest level since mid-May.The euro was at $1.1676, perched at the highest level since late May. Investors have been grappli…
Dollar hugs three-month lows as Treasury seeks to sooth the bond market
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Silver Price Holds Near $67 As US Treasury Buybacks Bolster Support: XAG/USD Outlook
BitcoinWorld Silver Price Holds Near $67 as US Treasury Buybacks Bolster Support: XAG/USD Outlook Silver (XAG/USD) is trading near $67 per ounce, maintaining a strong position as US Treasury buyback operations provide underlying support to precious metals markets. As of this analysis, the metal remains resilient despite broader market fluctuations, with traders focusing on the interplay between government debt management and investor demand for…
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