The dollar is up because foreigners wanting and needing to sell assets are buying the safety of dollars and U.S. government backed bonds - that last Treasury auction on one set of bonds sold with a yield of less than 1% - meaning the cost to the treasury - interest on it - will only be less than 1%. Somehow the world media mantra that everyone “hates the U.S.” hasn’t sunk in on companies and country treasurers seeking “safety” in troubled financial times.
Yes. Treasury should be selling more debt now and trying to term it out as much as they can while still hitting the sweet spot of the yield curve — then later, when interest rates rise, buy in more of the older higher interest debt in order to reduce our current interest expense. Such a strategy would pay off big for taxpayers.