The US doubled its own bond buybacks. Gold and Bitcoin both ripped.
Treasury lifted its debt buyback size from $2B to at least $4B per operation on Aug 19, after the 30-year yield hit 5.34% - its highest since 2007 (CNBC, TheStreet). Bloomberg reported long bonds erased the entire buyback rally within a day.
So what: when a government steps in to cap its own borrowing costs and the market hands the move straight back inside 24 hours, that isn't calm - it says deficits and supply are still in charge. Capital rotates to assets with no issuer. Gold futures +1.44% to $4,637/oz and BTC +7% on the same tape.
The trade: a debasement bid, not a risk-on bid. $BTC leads it, $ETH rides the same liquidity, $XAUT is the purest expression.
Does a 5.34% long bond make Bitcoin a hedge, or just another risk asset?
#Write2Earn #Bitcoin #CryptoNews #BondMarket #Macro
Not financial advice. DYOR.
Treasury lifted its debt buyback size from $2B to at least $4B per operation on Aug 19, after the 30-year yield hit 5.34% - its highest since 2007 (CNBC, TheStreet). Bloomberg reported long bonds erased the entire buyback rally within a day.
So what: when a government steps in to cap its own borrowing costs and the market hands the move straight back inside 24 hours, that isn't calm - it says deficits and supply are still in charge. Capital rotates to assets with no issuer. Gold futures +1.44% to $4,637/oz and BTC +7% on the same tape.
The trade: a debasement bid, not a risk-on bid. $BTC leads it, $ETH rides the same liquidity, $XAUT is the purest expression.
Does a 5.34% long bond make Bitcoin a hedge, or just another risk asset?
#Write2Earn #Bitcoin #CryptoNews #BondMarket #Macro
Not financial advice. DYOR.