US Treasury Buyback Expansion Drives Dollar Losses as Gold and Cryptocurrencies Surge The US Dollar traded lower against major rivals following the US Treasury Department's decision to double long-term bond buybacks, stoking fiscal deficit concerns while lifting Gold, Sterling, Euro, and Cryptocurrencies. The US Dollar (USD) is facing heightened downside pressure across global financial markets following a major policy intervention by the US Department of the Treasury. By expanding its bond buyback operations to cap long-term yields, the Treasury has inadvertently fueled concerns regarding long-term fiscal credibility, pushing the greenback down against almost all major foreign currencies. The sudden shift in currency dynamics has invigorated rallies in precious metals like gold, while boosting international currency pairs and high-risk digital assets such as Bitcoin. Treasury Expands Bond Buyback Program to Cap Long-End Yields Departing from its standard issuance calendar, the US Treasury Department introduced an unexpected liquidity enhancement measure. Announced at 12:32 GMT on Wednesday, the Treasury revealed plans to more than double its liquidity support buyback operations within the 10-year to 20-year and 20-year to 30-year maturity sectors. Under the updated guidelines, the maximum operation size will rise from $2 billion to at least $4 billion per session, with the expanded program scheduled to run from September 9 through November 4. While the expanded buyback initiative aims to suppress borrowing costs and stabilize long-duration US Treasury yields, financial strategists warn of potential side effects on currency stability. Elias Haddad, a senior currency analyst at Brown Brothers Harriman, pointed out that heavy state intervention runs the risk of muddying the boundaries between supporting market functionality and artificially masking fiscal strain. Haddad stressed that although capping long-end yields offers temporary relief to bondholders, it comes with a distinct credibility penalty for the US Dollar. As market participants recalibrate their yield expectations against intervention risks, foreign exchange traders have turned increasingly bearish on the Dollar. Budget Deficits and CBO Debt Forecasts Weigh on Confidence Compounding the pressure on the US currency are long-term structural concerns over government debt. Projections released by the Congressional Budget Office (CBO) highlight an absence of fiscal consolidation, outlining historically elevated budget deficits that could push overall national debt to a record 120% of GDP by the year 2036. Commenting on the sustainability of the current policy mix, Elias Haddad of Brown Brothers Harriman noted, "Without credible spending cuts or revenue increases, the White House plan risks being little more than putting lipstick on a pig." Without concrete structural reforms to address spending imbalances or boost federal revenues, market analysts expect fiscal concerns to remain a persistent drag on the Dollar's medium-term value. Market Focus Shifts to August US PMI Releases Traders are closely monitoring upcoming preliminary Purchasing Managers' Index (PMI) releases from S&P Global for August to gauge whether economic growth momentum can provide short-term support to the Dollar. The figures are slated for release at 2:45pm London time (9:45am New York time). Consensus estimates point toward a modest deceleration in US economic output. The Manufacturing PMI is expected to edge downward to 53.8 in August, compared to 53.9 recorded in July. Simultaneously, the Services PMI is projected to soften to 54.0 from July's 54.6 reading. Should the data reveal a narrowing growth differential between the US and other major economies, the Dollar could experience deeper losses; conversely, a positive surprise could offer temporary stabilization. Foreign Exchange Dynamics: Sterling and Euro Capitalize The retreat in the greenback has allowed rival currencies to carve out significant gains. The British Pound (GBP/USD) built on its weekly upward momentum, climbing past 1.3650 to trade at its highest level since February. Strong UK PMI data provided vital backing for Sterling, offsetting disappointment stemming from weak domestic retail sales figures. Similarly, the Euro (EUR/USD) gained firm traction during European trading, consolidating above the 1.1700 threshold. Even though underlying PMI surveys from Germany and the broader Eurozone presented a mixed growth picture, persistent Dollar weakness enabled the single currency to preserve its bullish trajectory. Gold Targets $4,600 Resistance as Crypto Rally Accelerates Beyond traditional currency markets, the Dollar's downturn has energized bullion and digital asset markets. Gold prices extended their weekly rally on Friday, with bullish traders aiming for a retest of the $4,600 resistance region, which marks the upper boundary of its six-month trading range. Lower yields alongside currency debasement worries have renewed investor appetite for safe-haven precious metals. Concurrently, the cryptocurrency space experienced broad-based gains led by Bitcoin (BTC), which decisively broke above $77,000. Major altcoins followed Bitcoin's lead, with Ethereum (ETH) hovering near $2,400 and Ripple (XRP) maintaining position near $1.35. Increased market liquidity expectations stemming from the Treasury's buyback initiative have helped sustain positive sentiment across digital asset trading desks. What this means for you • For Investors: Increased US Treasury bond buybacks have put downward pressure on the Dollar, fueling rallies in Gold, Sterling, Euro, and major cryptocurrencies. • For Forex Traders: Capped Treasury yields and upcoming US PMI data releases mean continued volatility across major currency pairs like GBP/USD and EUR/USD. Questions & Answers 1. What is the US Treasury's expanded bond buyback program? The US Treasury Department increased its liquidity support buybacks for 10-20 year and 20-30 year bonds from $2 billion to at least $4 billion per operation, running from September 9 to November 4. 2. Why is the US Dollar weakening following this announcement? The buybacks cap long-term Treasury yields and blur debt suppression with market functioning, stoking fiscal credibility concerns that weigh on the Dollar. 3. What are the Congressional Budget Office (CBO) projections for US debt? The CBO projects historically large budget deficits that will drive total US national debt to a record 120% of GDP by 2036. 4. How have Gold and Cryptocurrencies reacted to the Dollar selloff? Gold surged toward its $4,600 resistance area, while Bitcoin rose above $77,000 alongside gains in Ethereum and Ripple. https://trendkia.com/en/market/us-treasury-ki-buyback-yojana-se-us-dollar-para-dabava-gold-aura-crypto-market-men-teji-19733 TrendKia — Har trend, sabse pehle.