As part of its regular survey ahead of the quarterly refunding announcements, the US Treasury Department is asking major banks whether the government should buy back government bonds to improve the market liquidity, Reuters reported on Friday.
"The Treasury is also querying whether reduced volatility in the issuance of Treasury bills as a result of buybacks made for cash and maturity management purposes could be a meaningful benefit for Treasury or investors," Reuters further noted.
Market reaction
Safe-haven flows continue to dominate the financial markets in the last session ahead of the weekend. As of writing, the S&P 500 Index was down 1.9% on a daily basis at 3,600 points.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD challenges 0.6600 despite softer Australian wage growth data
AUD/USD holds firm near 0.6600 in Tuesday's Asian trading, despite softer-than-expected Australian Wage Price Index data. The pair continues to draw support from the RBA's hawkish tilt, notwithstanding a pause in the US Dollar decline and a mixed mood. US data awaited.
USD/JPY holds recovery gains above 147.00 ahead of US PPI data
USD/JPY is clinging to recovery gains above 147.00 in the Asian session on Tuesday. The US Dollar stalls its downside and offers a lift to the pair, as risk sentiment falters amid looming Middle East geopolitical risks. The focus now shifts to the US PPI inflation data.
Gold price trims part of overnight gains amid risk-on mood; US inflation data in focus
Gold price pulls back from the vicinity of the monthly peak retested earlier this Tuesday. Bulls opt to lighten their bets amid a positive risk tone and ahead of the US inflation data. Geopolitical risks and bets for a 50-bps rate cut by the Fed should help limit the downside.
Curve DAO price is set for a rally following a break above the descending wedge pattern
Curve DAO price broke out of the falling wedge pattern on Monday and trades up by 0.26% to $0.303 on Tuesday. On-chain data shows rising daily active addresses, indicating increased blockchain usage, which could signal a potential rally in the coming days.
But a prelude to the CPI showdown
Monday’s markets sported an air of serenity, a stark contrast to last week’s dramatic plunge, during which equities tanked, and volatility gauges spiked. However, looming geopolitical tensions and a parade of impending economic reports threaten to whip up the calm waters yet again.