GBP Hits Near Six-Month Highs on US Treasury Bond Buyback Concerns

The British Pound (GBP) has continued its upward trend against the US Dollar (USD), reaching near six-month highs. The GBP/USD pair is currently trading at the midrange of the 1.3600s, just below the high of 1.3675 reached on Friday.

This positive bias for the Pound can be attributed to ongoing concerns about the US Treasury's bond buyback plans. The US Treasury has announced that it will double its buyback operations for long-dated government debt starting in September, which has triggered a pullback in US bond yields and kept USD bulls on the defensive.

The UK data released last Friday was mixed, with retail consumption increasing below expectations in July, while August's preliminary services and manufacturing activity data beat expectations. This provided some support to the Pound, further solidifying its upward trend against the USD.