US Treasury’s plan to double buybacks of longer-dated debt pushes yields down 9 basis points, weakening the USD against the EUR.
EUR/USD surged to 1.1653, its highest level since June, rising 0.68% as the US Dollar weakened. The move followed the US Treasury’s announcement to at least double buyback operations for longer-dated securities, increasing the maximum size per operation from $2 billion to $4 billion.
The 30-year Treasury yield fell by 9 basis points to near 5.20%, reversing Tuesday’s climb above 5.30%. The US Dollar Index (DXY) dropped 0.65% to around 99, its lowest since June 1, as softer US economic data reduced expectations for a Federal Reserve rate hike.
Markets now await the FOMC’s July meeting minutes for further policy clues, while the European Central Bank’s stance remains a key contrast.