The dollar tumbled to a roughly three-month low after the US Treasury announced it would double its longer-dated bond buybacks, a move that sent yields lower and sparked a rally in gold and bitcoin.
Treasury Secretary Scott Bessent’s department said it would at least double the size of its longer-dated Treasury bond buybacks, from $2 billion to $4 billion per operation, running between September 9 and November 4. The accelerated program specifically targets the 10-to-20-year and 20-to-30-year portions of the curve, a segment that had seen a buyers’ strike since late June.
The announcement moved markets across asset classes almost immediately. The benchmark 10-year Treasury yield fell 5.7 basis points to 4.647%, while the 30-year “long bond” yield tumbled 9 basis points to 5.196%. The dollar fell nearly 0.8% against a basket of major currencies on the day, while gold and bitcoin both rallied as investors rotated into assets outside the dollar.
The effects lingered into the following session, with the dollar still hovering near its three-month low on Friday even as US stocks rebounded from the earlier bond-driven selloff. The move underscores how directly fiscal and debt-management decisions out of Washington can move currency markets, sometimes as forcefully as a central bank policy shift.
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