BitMEX founder Arthur Hayes posted a new article titled “Same Soup, Same Medicine.”
In the piece, he says that U.S. Treasury Secretary Scott Bessent expanding long-term Treasury buybacks is, in effect, providing the market with dollar liquidity.
In the most aggressive scenario, once the 10-year Treasury yield breaks above 5%, the Treasury could step in directly to do something like yield-curve control.
A more likely outcome is a gradual expansion of buybacks, and then tapping roughly $1 trillion in TGA funds.
In the piece, he says that U.S. Treasury Secretary Scott Bessent expanding long-term Treasury buybacks is, in effect, providing the market with dollar liquidity.
In the most aggressive scenario, once the 10-year Treasury yield breaks above 5%, the Treasury could step in directly to do something like yield-curve control.
A more likely outcome is a gradual expansion of buybacks, and then tapping roughly $1 trillion in TGA funds.