Dollar Slumps on Treasury's Double-Down Bet

The U.S. Treasury's decision to double its long-end buybacks of government bonds has sent shockwaves through financial markets, causing the dollar index (DXY) to plummet by nearly 1% to around 98.8 on August 19, 2026.

Gold prices surged over 2%, reaching $4,480 an ounce for the first time since early June, while Bitcoin briefly jumped 8% to $69,749 before closing at $68,361.

The move is seen as a sign that the U.S. Treasury is prioritizing liquidity maintenance over tighter monetary policy, which has led investors to question whether this marks a regime change in Washington's approach to debt management.

Analysts will be watching three key checkpoints: the Federal Reserve's minutes and data releases, the dollar index's performance around 98, and any extension or enlargement of the buyback program beyond November 4.