％United States Government Bond 10Y
US-10Y
Mentioned
Impact on stocks 2
Others
％United States 30 Year Bond Yield
US-30Y
Mentioned
Dollar weakens after US Treasury boosts bond buybacks, sending yields tumbling
MacroDigital Finance
The US dollar weakened against major currencies in New York trading on Wednesday after the US Treasury announced it would increase the size of its government bond buybacks, which sent bond yields tumbling sharply. The dollar index fell 0.83% to 98.833. The dollar weakened against the yen to 158.32 yen from 159.6 yen, and weakened against the Swiss franc to 0.7979 francs from 0.8125 francs. The euro strengthened to 1.1674 dollars from 1.1576 dollars, and the pound strengthened to 1.3607 dollars from 1.3534 dollars. The US Treasury will at least double the maximum size of its buybacks of 10- to 20-year and 20- to 30-year bonds, from 2 billion dollars to at least 4 billion dollars, effective from September 9 through November 4. The yield on the 10-year US Treasury note fell to 4.647%, and the 30-year yield fell to 5.196%. Investors showed little reaction to the minutes of the Federal Reserve's July meeting, in which policymakers expressed greater concern about inflation. The CME Group's FedWatch Tool indicated that investors see a 65% probability that the Fed will hold interest rates steady at its meeting on September 15 and 16.