US Treasury Buyback Plan Sends NZD Soaring Against USD

The New Zealand Dollar (NZD) has rallied against the US Dollar (USD), pushing north of the 0.5930 mark, due to a broad weakness in the Greenback.

The trigger for this move was the United States Treasury Department's announcement that it will at least double its buyback operations for longer-dated coupon securities, lifting each operation from $2 billion to at least $4 billion between September 9 and November 4.

This plan aims to support liquidity and cap the recent climb in long-end yields. As a result, the US 10-year yield has fallen back toward 4.65% after trading above 4.70% earlier in the day.