US dollar hits 3-month low after Treasury moves to curb yield spike
What's new: Long-bond yields eased from near-2007 highs after the Treasury expanded 10- to 30-year buybacks, lifting stocks and pressuring the dollar.
The US dollar fell to a three-month low on Thursday after the Treasury Department stepped in to calm a bond sell-off that had driven long-dated yields to their highest levels since 2007. The dollar index slipped to 98.558, while the euro climbed to $1.1710 and the yen strengthened to about 158.5 per dollar. Markets rallied after the Treasury said it would at least double buybacks of securities maturing in 10 to 30 years, a move aimed at easing borrowing costs and steadying the long end of the curve. The 30-year Treasury yield, which had reached 5.337%, later eased to about 5.22%. Fed minutes also showed several policymakers were prepared to raise rates if inflation failed to cool, keeping attention on Chair Kevin Warsh and next week's Jackson Hole meeting.