The USD weakens against AUD, NZD, EUR, JPY, and GBP as Treasury buybacks ease long-end yield volatility midweek.
The U.S. dollar opened lower against all major currencies, with the Australian and New Zealand dollars leading gains at 0.77% and 0.67%, respectively. The euro, yen, and pound also advanced, rising 0.20% to 0.30% against the greenback in early trading.
U.S. Treasury yields showed mixed movement but remained near the midpoint of this week’s volatile range. The 30-year yield, which hit a 17-year high of 5.337% on Tuesday, retreated after the Treasury announced plans to double longer-dated bond buybacks to $4 billion per operation, up from $2 billion. The 30-year yield settled at 5.24% this morning, while the 10-year yield held at 4.692%.
The Treasury’s liquidity support followed sharp swings in long-end yields, with the 30-year yield dropping to 5.178% before rebounding. The 10-year yield similarly fluctuated between 4.759% and 4.633% this week.