Bitcoin hit an 11-week high after the US Treasury doubled its debt buyback size.
Starting September 9, the Treasury will buy back at least $4 billion in government debt per operation, up from $2 billion. The 30-year bond yield dropped 9bps immediately after hitting a 20-year high.
Our take: This is a temporary liquidity injection into longer-dated debt, not a debt reduction. It’s a re-arrangement, as Peter Boockvar noted, but it still adds cash to the system. With national debt nearing $40 trillion and interest payments tripling since 2020, the Treasury is managing the optics of rising yields. The market sees a green light for risk assets. The underlying debt problem hasn't changed.
RSI(14) is at 92. This bounce is printing hard, but it’s overextended. Real breakout, or just exit liquidity for early dip buyers?
$BTC
Starting September 9, the Treasury will buy back at least $4 billion in government debt per operation, up from $2 billion. The 30-year bond yield dropped 9bps immediately after hitting a 20-year high.
Our take: This is a temporary liquidity injection into longer-dated debt, not a debt reduction. It’s a re-arrangement, as Peter Boockvar noted, but it still adds cash to the system. With national debt nearing $40 trillion and interest payments tripling since 2020, the Treasury is managing the optics of rising yields. The market sees a green light for risk assets. The underlying debt problem hasn't changed.
RSI(14) is at 92. This bounce is printing hard, but it’s overextended. Real breakout, or just exit liquidity for early dip buyers?
$BTC