Treasury buybacks raise questions about the Dollar

Treasury's long-term debt buybacks are becoming more than a bond-market story.
The policy is intended to support liquidity and ease pressure further out on the yield curve, but the FX consequences could become increasingly important.
Japan provides an extreme example of the risk: years of suppressing long-term yields coincided with a powerful depreciation cycle in the Yen.
If U.S. markets begin interpreting Treasury intervention as an attempt to artificially contain borrowing costs, $DXY could become the pressure valve.