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Bitcoin climbs above $80,000 as Treasury considers larger bond buybacks
The Treasury General Account, estimated near $940 billion, could be used to expand 10- to 30-year bond buybacks, a move tied to market liquidity pressures.
Bitcoin rose above $80,000, extending gains during August as the US Treasury explored ways to fund a broader effort to support longer-term government debt and stabilize borrowing costs, according to reporting cited by CryptoSlate.
Two senior Treasury officials told CNBC that the Treasury General Account, an operating account held at the Federal Reserve, could help finance expanded bond buybacks. The officials did not specify the amount or timing, with Reuters previously estimating the account at about $940 billion as of last Wednesday.
The report builds on a shift announced Aug. 19, when Treasury said it would at least double liquidity-support buybacks for 10- to 30-year securities to $4 billion per operation from $2 billion, starting Sept. 9 through Nov. 4. The 30-year Treasury yield had risen to as high as 5.337% before falling to about 5.18% after the Aug. 19 announcement, and by the end of last week longer-dated yields largely retraced the decline.
Treasury has not yet conducted the enlarged purchases, and the reversal reflected skepticism about the announcement rather than a completed program, with the larger operations set to begin in September. CryptoSlate also notes Treasury Secretary Scott Bessent said purchases could rise beyond the $4 billion level, and that regular auctions would continue while future changes are left open for the next quarterly refunding.
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