Ebury Strategist Says U.S. Treasury Buybacks May Weigh on the Dollar More Than Yields

According to Jin10, Ebury chief foreign exchange strategist Roman Ziruk said the impact of the U.S. Treasury's stepped-up intervention may be more lasting for the dollar than its effect on yields themselves. He said the buyback operation was not intended to solve the deficit problem, and that market interpretation of why the Treasury felt compelled to intervene and use unconventional measures has itself become a source of risk premium. Ziruk said this departs from traditional economic logic, under which rising yields usually support a currency by attracting capital inflows, but the dollar has remained weak despite yields continuing to climb because investors increasingly see it as a sign of fiscal and institutional strain rather than economic strength.