The dollar posted its largest three-week decline as the U.S. Treasury moved to ease selling pressure in long-dated bonds

Odaily News: The dollar weakened sharply on Wednesday, and the U.S. Treasury market rebounded after an unexpected announcement to expand the scale of long-term Treasury buybacks, driving long-term yields notably lower. The dollar index fell as much as 0.85% during the session, marking its biggest drop in three weeks and hitting its lowest level since mid-May.

On the day, the dollar declined against all major currencies, with the Swiss franc and Swedish krona posting the largest gains, while the yen also strengthened significantly. Market participants believe that the Treasury's sudden increase in long-term bond buybacks has alleviated the recent sustained selling pressure in the long-end Treasury market, while also signaling to investors that the Treasury is closely monitoring bond market volatility.