Jackson Hole Symposium Set to Determine Dollar's Fate

Last week's market events revolved around debt markets. On Wednesday, US Treasury Secretary Scott Bessent announced an expansion of the bond buyback programme, which primarily concerns long-term Treasury bonds.

The maximum threshold for individual buyback operations will be increased at least twofold to 4 billion USD, with 30-year bond yields rising to 19-year highs at 5.33%. The market reacted swiftly, with 30-year bond yields falling by 10 bps and the dollar weakening by 0.9% against the euro.

However, in subsequent days, the market erased over half of Wednesday's move in debt markets, with the dollar unable to recoup most losses due to ongoing fiscal and institutional concerns.

The US Dollar (USD) has been under pressure, with investors closely watching actions aimed at stabilizing the debt market situation. The upcoming symposium in Jackson Hole will likely discuss this topic extensively.