The US Treasury’s decision to expand purchases of older long-dated government bonds has reignited concerns in foreign-exchange markets that efforts to contain rising borrowing costs could eventually shift pressure onto the dollar, according to a report by Reuters.
On Wednesday, the Treasury said it would at least double the maximum size of certain buyback operations to $4 billion. The purchases are aimed at older, less-liquid Treasury securities that have come under heavy selling pressure since late June. Treasury Secretary Scott Bessent subsequently indicated that the buyback could exceed $4 billion, while suggesting that the recent bond selloff had moved too far.
