Dollar dips on Treasury market intervention
The US dollar declined to its lowest level in nearly three months against the euro, following the intervention by the US Treasury to contain turmoil in the long-term bond market. The Treasury announced it would double bond purchases of maturities between 10 and 30 years to a minimum of $4 billion per operation, in an effort to soothe a market that saw yields rise to their highest levels since 2007 amid concerns over the US fiscal deficit. However, bond yields rebounded during the session, as investors continued to question the effectiveness of Treasury interventions, with 30-year bonds yielding around 5.225% and 10-year bonds around 4.688%. Markets remain focused on the trajectory of US monetary policy and the Federal Reserve's readiness to raise interest rates to combat inflation, which continues to raise concerns among policymakers.
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