Unscheduled Treasury buyback expansion sparks largest daily Dollar drop since March, raising concerns over US asset confidence.
The US Dollar recorded its steepest daily decline since March after the Treasury unexpectedly expanded its bond buyback program. The move increased planned buybacks from a maximum of USD 2bn to at least USD 4bn, targeting 10-year and longer maturities.
The announcement follows earlier plans and comes amid growing unease over US yield levels. Analysts warn the strategy may backfire, reducing appetite for US assets and Dollar exposure even if yields remain contained.
Markets reacted swiftly, with the Dollar weakening as investors reassessed risks tied to US fiscal policy and asset demand.