U.S. Treasury’s move to boost long-dated bond buybacks eases selloff fears, lifting risk assets and weakening the dollar index to 98.558.
The U.S. dollar index fell to 98.558, its lowest since mid-May, after the Treasury Department announced plans to increase buybacks of 10- to 30-year securities. The move aimed to calm a bond market selloff that had pushed 30-year yields to a 19-year high of 5.337% earlier this week.
The euro climbed to $1.1710, its highest level since May, as the Treasury’s action reduced concerns over a disorderly selloff in longer-dated bonds. The 30-year yield dropped 9 basis points to 5.22% following the announcement, reflecting a shift in government borrowing toward shorter-term bills.
Market sentiment improved as investors viewed the buyback plan as a signal that the Treasury is managing long-term rates amid concerns over soaring government debt and geopolitical risks. The dollar’s decline supported risk assets, though broader macroeconomic uncertainties persist.