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Treasury to double long-bond buybacks as BTC rallies past $77,000
The Treasury plans to buy back at least $4 billion of 10 to 30 year bonds per operation from Sept. 9 through Nov. 4, a move analysts say is aimed at smoothing long-term bond liquidity rather than launching QE or yield curve control.
CoinDesk reports the U.S. Treasury has announced it will double its buybacks of long-term government bonds to at least $4 billion per operation through early November, sending bitcoin higher as hard assets rally.
According to CoinDesk, the program runs from Sept. 9 through Nov. 4 and targets older, less frequently traded long-duration (10 to 30 years) bonds on multiple occasions, replacing a prior $2 billion per-issue cap.
CoinDesk says Treasury officials and analysts view the action as closer to a modern version of “Operation Twist,” intended to support bond-market liquidity rather than create new money. The outlet also notes that long-term borrowing costs have risen to the highest level in almost two decades, adding to concerns for both government finances and risk appetite across assets including crypto.
CoinDesk adds that bitcoin has jumped past $77,000, up 23.0% for the week, the largest weekly gain since March 2023, with the article tying the rally less to the mechanics of the buybacks and more to what the move signals to the market. The piece also mentions gold strength and a softer dollar against major currencies.
Latest closeGold $4,432.00 ▲1.6%|Bitcoin $77,298.59 ▲5.8%