The US Treasury has at least doubled the maximum size of its buyback operations on long-term bonds since September 9, raising the cap from $2 billion to at least $4 billion per operation, with a first expanded intervention of $6 billion allowing the repurchase of $5.19 billion in securities. The official objective aims to improve market liquidity, but the buybacks must be compensated by new debt issuance. The 30-year US rate reached 5.37% during the first enhanced operation, illustrating market caution regarding this mechanism which differs from a QE program. For bitcoin, the impact remains indirect: lower long-term yields could favor risk assets, but US rates have so far continued to rise despite the buybacks.
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