By Karen Brettell and Niket Nishant
Aug 21 (Reuters) - The dollar slipped on Friday, trading near a three-month low against the euro, as concerns mounted that the U.S. Treasury's plan to expand buybacks of longer-dated government debt could weigh further on the U.S. currency.
Treasury Secretary Scott Bessent said Thursday he may increase the government's repurchases of Treasuries even further, a day after the department surprised markets by pledging to at least double the size of its buybacks of longer-dated debt in an effort to rein in bond yields.
Long-dated yields jumped this week, with the 30-year yield reaching its highest level since 2007. Traders cited concerns over the deteriorating fiscal outlook, heavy issuance, geopolitical risk stemming from the war with Iran, and uncertainty over the Federal Reserve's policy path.
Analysts say that holding yields down will simply shift the burden of fiscal concerns onto the currency. And so far the strategy hasn't achieved its primary goal, as yields have crept back higher.
#longer #debt #karen
Aug 21 (Reuters) - The dollar slipped on Friday, trading near a three-month low against the euro, as concerns mounted that the U.S. Treasury's plan to expand buybacks of longer-dated government debt could weigh further on the U.S. currency.
Treasury Secretary Scott Bessent said Thursday he may increase the government's repurchases of Treasuries even further, a day after the department surprised markets by pledging to at least double the size of its buybacks of longer-dated debt in an effort to rein in bond yields.
Long-dated yields jumped this week, with the 30-year yield reaching its highest level since 2007. Traders cited concerns over the deteriorating fiscal outlook, heavy issuance, geopolitical risk stemming from the war with Iran, and uncertainty over the Federal Reserve's policy path.
Analysts say that holding yields down will simply shift the burden of fiscal concerns onto the currency. And so far the strategy hasn't achieved its primary goal, as yields have crept back higher.
#longer #debt #karen
5 days ago
