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Bitcoin and gold rally after Treasury doubles long bond buyback size

Treasury said it raised the maximum size of 10-, 20-, and 30-year bond repurchases to at least $4 billion per operation, yet yields stayed near multiyear highs.

Reported · Written up by our desk · Market Structure

CoinDesk reports U.S. Treasury Secretary Scott Bessent doubled the maximum size of certain long term Treasury bond buybacks to at least $4 billion per operation, increasing limits for 10-, 20-, and 30-year repurchases from $2 billion. Despite the change, Treasury yields remained near multiyear highs, with longer duration yields hovering at their highest levels since 2007.

Following the announcement on Aug. 19, CoinDesk says the market reaction showed up primarily in hard assets rather than in bonds. Bitcoin surged to nearly $80,000, while the broader crypto market saw liquidations tied to short positions.

CoinDesk adds that gold also rallied as investors interpreted the buyback plan as a possible sign of more aggressive steps to ease liquidity and manage rising federal borrowing costs. The reporting notes persistent concerns about debt, deficits, and inflation could limit the program’s ability to push yields lower while still supporting demand for assets viewed as hedges.

Latest closeGold $4,432.00 ▲1.6%|Bitcoin $77,067.26 ▼0.0%

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