U.S. Treasury Buybacks Could Impact Dollar More Than Yields -- Market Talk

0636 GMT - For the dollar, the implications of increased U.S. Treasury intervention may prove more lasting than for the yields themselves, Ebury's Roman Ziruk says in a note. "Buybacks were never designed to fix the deficit, but the market's reading of why the Treasury felt compelled to intervene and reach for tools beyond the norm has itself become a source of risk premium," the lead FX strategist says. That is a break from the textbook relationship, where higher yields should support a currency by attracting capital, he says. "Instead, the dollar has struggled even as yields climbed, because investors increasingly read this as a symptom of fiscal and institutional strain rather than economic strength." (emese.bartha@wsj.com)

(END) Dow Jones Newswires

September 10, 2026 02:36 ET (06:36 GMT)