Dollar Slides as Treasury Doubles Down on Bond Buybacks

The Treasury Department's decision to double its long-term bond buyback programme has become the dominant story for EUR/USD bulls this week. The move, aimed at easing liquidity strains after a sharp climb in yields, has instead triggered a broad dollar selloff that's spilling across asset classes.

Gold and bitcoin both spiked on the news, a classic signal that investors are reading this as tacit tolerance for dollar depreciation. With US debt now above $40 trillion and oil prices elevated, the market is asking whether Washington is prioritizing bond market stability over currency strength.

For euro traders, this shifts the narrative away from pure rate differentials toward US fiscal credibility. Any follow-through commentary from Treasury officials next week could extend or reverse this dollar-negative momentum.