The US dollar posts its largest three-week decline as the Treasury Department acts to ease long-term bond selling pressure

Odaily reported that the US dollar weakened sharply on Wednesday after the US Treasury unexpectedly announced an increase in the scale of long-term US Treasury bond buybacks. This triggered a rebound in the US Treasury bond market and caused a significant drop in long-term yields. The US Dollar Index fell as much as 0.85% intraday, marking its largest decline in three weeks and hitting its lowest level since mid-May.

On the day, the US dollar declined against all major currencies, with the Swiss franc and Swedish krona leading the gains, and the Japanese yen also strengthening notably. Market participants believe the US Treasury’s sudden increase in long-term bond buybacks has eased the recent pressure from continued selling in the long end of the Treasury market, while signaling to investors that the Treasury is closely monitoring bond market volatility.