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.
31 Articles
31 Articles
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.
Euro fades below 1.1700 as US Dollar rebounds on yields
The Euro remains steady below 1.1700 after failing to hold gains above it, despite hitting a three-month high. Broad US Dollar strength kept EUR/USD from ending Thursday’s session above the 1.1700 mark, with the pair finishing at around familiar levels, unchanged from Thursday’s opening price. EUR/USD stalls as stronger yields support Dollar before Flash PMIs The Greenback’s recovery was sparked by the rise in US Treasury yields, erasing some of…
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. …
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