The Swiss Franc gains 0.17% against the Dollar after the US Treasury announces plans to accelerate debt repayment, weighing on USD.
The USD/CHF pair fell 0.17% to near 0.7990 in Asian trading, extending the Swiss Franc’s rebound against the Dollar. The decline follows the US Treasury’s announcement to double its debt repayment pace, aiming to curb rising borrowing costs.
US Treasury yields initially plunged on the news but recovered most losses as markets questioned the long-term impact of the buyback plan. Analysts noted the move shifts debt composition toward newer, more liquid securities without reducing total debt, likely financed through increased bill issuance.
Strategists warned the plan may offer only temporary relief, as fiscal credibility concerns continue to pressure the Dollar. The buyback program retires older bonds in favor of newer issuances, leaving overall debt levels unchanged at $31.4 trillion.