USD Weakness Boosts Asian Currencies Amid Treasury Buyback Expansion

The US dollar has weakened after the US Treasury Secretary announced an expansion of long-dated Treasury buyback operations to ease pressure from rising long-end yields.

Treasury purchases of 10-year to 30-year securities will be increased substantially, leading to a decline in long-end Treasury yields and a weaker dollar.

While these buybacks alone may not alter longer-term fundamentals, they signal policymakers' willingness to lean against further yield increases, suggesting the relative-rate story that supported the dollar is fading.