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Bitcoin rises to 11-week high after Treasury expands debt buybacks

BTC/USD cleared $69,700 on Bitstamp and climbed 6% after the Treasury said debt buybacks would rise from $2 billion to at least $4 billion per operation starting Sept. 9.

Reported · Written up by our desk · Market Structure

Bitcoin surged to its highest level since early June as risk assets rallied following a US government liquidity move, with TradingView data showing BTC/USD passing $69,700 on Bitstamp, up about 6% on the day. Cointelegraph said the rally coincided with the US Treasury Department’s announcement that it would at least double the size of its government debt buyback operations beginning Sept. 9, raising buybacks from $2 billion to a minimum of $4 billion per operation. The outlet reported that the announcement also moved the long end of the rates market, with the US 30-year bond yield falling immediately after the news. At the time of writing, the 30-year yield was 5.19%, down 9 basis points, after having hit its highest level in nearly 20 years the prior day. Cointelegraph added that an official press release linked the larger buybacks to a goal of providing greater liquidity support in longer-dated nominal Treasury segments, where Treasury receives substantial high quality offers. A quoted analysis also emphasized the buyback program is not debt paydown but a maturity schedule rearrangement, as US national debt continues to approach the $40 trillion milestone.

Latest closeBitcoin $68,345.20 ▲5.7%

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