After the US Treasury previously announced that it would double the upper limit of long-term bond repurchase operations to 4 billion US dollars, the bond market once rebounded sharply, and long-term yields declined markedly, but this optimism did not continue. Analysts said that buybacks are difficult to resolve the root causes of higher yields, including unsustainable fiscal deficits and rising inflation expectations. And if the Ministry of Finance has substantial concerns about the turmoil in the bond market, more aggressive intervention is expected to limit the dollar's upside. Although there are reasons for the dollar to rise in terms of interest rate logic, the overall policy mix is not friendly to the US dollar. If the Ministry of Finance has substantial concerns about the turmoil in the bond market, more aggressive intervention is expected to limit the dollar's upward space. Citigroup's short-term view on the US dollar has turned bearish. Previously, the agency issued an alert on the risks associated with the repurchase of US bonds. Citibank strategist Daniel Tobon and his team lowered the US dollar index forecast for the next three months from 102.12 to 98.34. The US Treasury's buyback policy will put new downward pressure on the US dollar by depressing long-term yields and raising market concerns. In terms of major non-US currencies, Citi raised its short-term forecast for the euro and raised the EUR/USD exchange rate forecast for the next three months to 1.1750.

After the US Treasury previously announced that it would double the upper limit of long-term bond repurchase operations to 4 billion US dollars, the bond market once rebounded sharply, and long-term yields declined markedly, but this optimism did not continue. Analysts said that buybacks are difficult to resolve the root causes of higher yields, including unsustainable fiscal deficits and rising inflation expectations. And if the Ministry of Finance has substantial concerns about the turmoil in the bond market, more aggressive intervention is expected to limit the dollar's upside. Although there are reasons for the dollar to rise in terms of interest rate logic, the overall policy mix is not friendly to the US dollar. If the Ministry of Finance has substantial concerns about the turmoil in the bond market, more aggressive intervention is expected to limit the dollar's upward space. Citigroup's short-term view on the US dollar has turned bearish. Previously, the agency issued an alert on the risks associated with the repurchase of US bonds. Citibank strategist Daniel Tobon and his team lowered the US dollar index forecast for the next three months from 102.12 to 98.34. The US Treasury's buyback policy will put new downward pressure on the US dollar by depressing long-term yields and raising market concerns. In terms of major non-US currencies, Citi raised its short-term forecast for the euro and raised the EUR/USD exchange rate forecast for the next three months to 1.1750.