US Treasury Intervention Sparks Dollar Sell-Off

The US Dollar came under pressure after Washington stepped directly into the Treasury market. The immediate trigger was the US Treasury's decision to double liquidity-support buybacks for 10- to 30-year debt from $2bn to at least $4bn per operation.

Long-dated yields fell around 10 basis points and the Dollar sold off sharply, with DXY breaking below the 99.40-100.00 range that had contained it.

ING's Chris Turner argues that the Treasury intervention has created a backstop for long-end bond-market stress, similar to the old idea of a 'Greenspan Put' in equities. He calls this new policy the 'Bessent Put' and expects a 'Risk-on, Dollar-off' environment.