Dollar index trims loss after US Treasury buyback plan

The Treasury's buyback signal is notable less for its immediate market impact than for what it implies about official comfort with liquidity management. By stepping in to support the bond market, policymakers may be addressing term premium concerns that have weighed on risk sentiment. For dollar traders, the open question is whether this marks a shift toward more active intervention, or a one-off measure. The lack of disclosed scale and timing leaves room for speculation, making follow-through on program details the key variable for currency and rates markets alike.