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Dollar stabilizes after Treasury doubles long-dated buybacks

DBS says the DXY slipped below 99, but with monetary policy unchanged, it expects consolidation rather than renewed USD losses today.

Reported · Written up by our desk · Major Pairs

DBS Group Research strategist Chang Wei Liang said the US dollar is seeing consolidation after the US Treasury unexpectedly doubled parts of its long-dated debt buyback program, pushing the US Dollar Index, DXY, below 99. He noted that the operation size is small and monetary policy remains unchanged, which points to stabilization rather than further declines.

FXStreet reported that the Dollar’s softer tone is helping EUR/USD hold near 1.1670 after earlier weakness from levels above 1.1700. Meanwhile, GBP/USD stayed in positive territory above 1.3600 as the US currency steadied.

The report also linked the USD reaction to Treasury yield moves, noting that after Wednesday’s sharp pullback, US Treasury yields stabilized on Thursday, with the 10-year yield edging up to 4.672%. The earlier yield decline was attributed to the Treasury’s decision to increase liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, with the maximum per operation raised from $2 billion to at least $4 billion effective September 9.

Latest closeEUR/USD 1.157 ▲0.4%|GBP/USD 1.354 ▲0.3%|Dollar index 99.64 ▼0.3%

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