US Treasury buyback plans and verbal intervention weigh on the dollar, pushing EUR/USD and GBP/USD higher while yields dip.
The dollar extended losses Friday as traders digested the US Treasury’s decision to double long-term debt buybacks, signaling continued support for bond markets. EUR/USD rose 0.2% to 1.1705, nearing a test of 1.1800, while GBP/USD hit six-month highs at 1.3660, eyeing 1.3850 if resistance breaks. USD/JPY fell 0.4% to 158.48, approaching its 200-day moving average at 158.29.
Yields on 10-year Treasuries retreated to 4.685% after briefly touching 4.71%, while 30-year yields eased to 5.235% from a high near 5.33% earlier in the week. The pullback follows verbal intervention from officials, reinforcing market expectations of sustained policy support.
The dollar’s decline aligns with technical breaks in key pairs, though further downside may hinge on yields remaining subdued. Traders are monitoring whether the buyback-driven relief proves temporary or marks a broader shift in sentiment.