US Treasury’s liquidity-support buyback announcement drives long-term yields lower, weakening the Dollar Index and boosting major currency pairs.
The US Treasury’s liquidity-support buyback announcement triggered a sharp decline in long-term Treasury yields and the Dollar Index (DXY), fueling a rally in major currencies. EUR/USD rose toward 1.1700, while GBP/USD and EUR/JPY also gained ground.
Prior to the announcement, the DXY hovered near 100, but the move pushed it toward a test of 98.50–98.00 before a potential rebound. The shift reflects market expectations of improved liquidity and reduced upward pressure on yields.
The immediate reaction saw EUR/USD climb to multi-week highs, with traders positioning for further upside if the DXY breaks below key support levels.