Under pressure as yields capped – OCBC

OCBC strategists Sim Moh Siong and Christopher Wong say the Dollar has weakened to its lowest level since May as expanded Treasury buybacks pushed long-end US yields lower. They expect restrained yields and a Fed that remains on hold to keep the USD under pressure in the near term, with attention turning to Fed Chair Warsh’s Jackson Hole speech next week.

Dollar soft with yields constrained

“The USD (i.e. DXY) fell to its weakest level since May, while long-end US Treasury yields declined after the US Treasury announced larger long-end bond buybacks. The Treasury will increase the size of its longer-dated buyback operations from USD2bn to at…

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