US Dollar Tumbles on Treasury Buybacks

The US dollar suffered its sharpest decline in three weeks after increased Treasury buybacks drove long-end yields lower.

With the DXY breaking support and USD/JPY turning lower again, traders are watching whether the move has further to run. The US Treasury's decision to increase buying of longer-dated bonds supported bond prices and pushed yields lower, reducing the relative appeal of US assets to global investors.

The 30-year yield fell from 5.3%, a level not seen since 2007, just ahead of the global financial crisis. The 20- and 30-year yields both declined around 10bp on Wednesday, with the 30-year posting its largest daily fall in nearly two years.