Treasury’s ramped-up bond buybacks soften the U.S. dollar and boost the gold price – Julius Baer - KITCO
Treasury’s ramped-up bond buybacks soften the U.S. dollar and boost the gold price – Julius Baer - KITCO
Source: KITCO
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DW NOTE
The Treasury bought back $17.5 billion in bonds in May, a pace that annualises to roughly 1% of outstanding debt. Julius Baer calls this dollar-softening stimulus. But the dollar index is up 3% since May, and real yields remain positive — which means the buybacks are being funded by new issuance at higher rates, not money printing. If this is easing, it's the kind that makes debt service more expensive.