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Dollar steadies near three-month lows as Treasury yields rebound
30-year Treasury yields are climbing back toward post-announcement levels after the Treasury raised its minimum purchase volume to $4 billion.
The US dollar has stabilized near three-month lows as Treasury bond yields rebounded following a Treasury move that increased the minimum purchase volume to $4 billion, Action Forex reports. The outlet says yields on 30-year Treasuries are returning to the levels seen after the Treasury announcement.
Action Forex adds that the greenback received support alongside a mix of risk and macro signals, including lower stock indices, continued strength in Brent crude, and improving US data. It cites S&P Global’s Purchasing Managers’ Index, which jumped to 56 in August, the highest reading since April 2022, and notes that Bloomberg analysts raised their forecast for third-quarter US GDP from 2% to 2.5%.
The piece frames renewed Treasury yield pressure as part of a broader “debasement trade,” driven by erosion of confidence in currencies and bonds. It says capital is shifting away from debt and currency markets into other areas such as gold and Bitcoin, and it links the dynamic to carry-trade mechanics where low-yield currencies like the Swiss franc and Japanese yen can be used as funding.
Action Forex also points to consequences in Switzerland, where the franc’s appreciation was strong enough to prompt currency interventions by the Swiss National Bank. It further cites SNB Governing Board member Petra Tschudin, who said the regulator may consider negative interest rates to keep inflation within its 0% to 2% target range.
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