On November 4, the US Treasury bought back $6 billion in face value of older bonds, reaching the cap on its operation. One bond accounted for $4.924 billion, or 82% of the purchases, while two bonds concentrated nearly 98% of the total across 40 eligible securities. Dealers submitted $39.636 billion in offers against the $6 billion ceiling and are asking for more frequent purchases, earlier communication and limits by security to spread demand more evenly. These buybacks improve liquidity in some markets but do not automatically inject liquidity into bitcoin, particularly since the Treasury continues issuing new debt and the effective cash purchase was about $4 billion before accrued interest. The Treasury plans up to $70 billion in liquidity-support buybacks from November through January, and the program’s effectiveness will depend mainly on easier trading and reduced financing pressures.
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