All articles tagged with #treasury buybacks
US long-term bond yields spiked to multi-year highs after Scott Bessent’s buyback plan failed to convince traders, with analysts saying buybacks have limited impact without addressing the debt trajectory and deficits.
The bond market rebuked the Treasury’s plan to curb borrowing costs by buying back up to $6 billion of long-dated debt, with the 10-year yield rising to its highest level in about three years, signaling investor skepticism about the plan’s impact and the details behind it.
Fed Governor Christopher Waller signaled he could back holding rates steady if inflation cools, triggering a fresh rally in Bitcoin (BTC-USD) to around $81,000 and bringing it within reach of the $83,000 resistance. The move echoes the August US Treasury bond-buyback expansion that helped spark the so-called debasement trade, with Bitcoin, gold, and other high-beta assets climbing as the dollar fell and equities like MicroStrategy, Coinbase, and others surged. Analysts say a sustained move above roughly $83K would break the February-driven range, though a hotter-than-expected inflation print could rekindle expectations for a rate hike.
Bitcoin jumped about 23% in the past week on a historic shorts squeeze and a macro catalyst from Treasury buybacks championed by Scott Bessent. Trading activity surged, open interest declined, and funding rates normalized as liquidations surged. The options market flipped to a negative skew, suggesting a momentum shift, while Bitcoin reclaimed major moving averages in four days—a pattern seen at prior cycle bottoms—fueling talk of a potential bull-market reset, even though BTC remains roughly 36% below its all-time high.
Investors are bracing for Fed Chair Kevin Warsh’s Jackson Hole speech, hoping for clarity on future policy as U.S. Treasury buys long-term bonds to cap yields; the move, and Warsh’s comments, could steer the dollar and shape the yield curve amid elevated long-term rates and inflation concerns.
Stanley Druckenmiller criticizes Scott Bessent’s plan to push down long-term US yields with larger Treasury buybacks, arguing that the market should set prices and deficits must be reduced. Bessent has expanded buyback capacity and even considered using the General Account, as US debt nears $40tn and deficits are forecast around $2tn, highlighting a debate over how to discipline yields.
Gold climbed for a third straight week, topping $4,600 as concerns about U.S. debt and the Treasury’s move to double long-dated bond buybacks boosted demand for safe havens, aided by a weaker dollar; analysts say the rally is driven more by bond-market interventions than rate expectations, with July PCE data and Fed Chair Warsh’s Jackson Hole speech in focus next.
Bitcoin jumped through the $67,000 level and gold rose as U.S. Treasury buybacks and a weaker dollar boosted risk assets, fueling a high-momentum week for crypto. Regulators signaled a friendlier stance on crypto finance, with the CFTC weighing easier rules, while political figures like Trump continued to push crypto-friendly policies; the rally was helped by bears covering positions, with billions in bearish crypto bets liquidated by week’s end.
Gold jumped to a nearly three-month high after the U.S. Treasury said it would sharply increase buybacks of longer-dated debt, pushing yields lower and the dollar weaker and reviving bullion demand. Front-month gold rose about 2.8% to roughly $4,489.40 an ounce (its highest settlement since May 29), silver rose about 2% to $65.73, and mining stocks rallied as bullion prices strengthened. The move followed the Treasury doubling liquidity-backstop buybacks to $4 billion, with the 30-year yield falling to 5.19% and the 10-year to 4.65%. Despite inflation concerns still echoed in Fed minutes, a weaker dollar and lower real yields could sustain gold’s rally, though further gains depend on upcoming inflation data and yields.
Treasury Secretary Scott Bessent said the Treasury could expand its buyback program beyond the announced $4 billion per issue to push down long-term yields, a day after the department doubled purchases for this fall. The plan, set to run Sept. 9–Nov. 4, aims to calm markets amid light August trading and heavy corporate debt issuance, though analysts warn that larger buybacks may have limited lasting impact as deficits rise and inflation remains above target. The administration also previewed a push for fiscal consolidation and tariff-driven revenue to address the mounting debt, with the Fed maintaining independence in policy decisions.
The U.S. Treasury unexpectedly raised its long-term bond buyback cap from $2 billion to at least $4 billion starting Sept. 9, a move that immediately boosted liquidity and pushed the 30-year yield down to about 5.20% as the dollar weakened. The shift aims to ease stress in a stressed bond market and suggests bigger bond auctions may be on the horizon, even as investors weigh inflation, borrowing needs, and the path of policy.
US Treasury raised its long‑term debt buyback cap from $2B to at least $4B to curb a recent yield sell‑off, a move aimed at boosting market liquidity but potentially increasing inflation risk and complicating Fed policy under Chairman Kevin Warsh. The buybacks are not QE and would be funded by issuing more short‑term bills, a shift that could alter the debt profile and raise sensitivity of financing costs to rate moves. The intervention helped reverse part of the sell‑off, with the 10‑year yield retreating and the dollar dipping, even as TBAC cautions against using buybacks to change debt composition. Markets remain wary ahead of Jackson Hole as policymakers grapple with aligning Treasury actions and Fed policy.