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ABL阿布辣2020
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BullishU.S. Treasury to spend $6 billion to “buy back long-term bonds” to bail out the market!
Inflation gloom lingers, yields are pressured back to 4.85%
The U.S. Treasury announced it will carry out a large-scale bond repurchase operation on September 10, with up to $6 billion to be bought back in legacy government bonds with remaining maturities of between 10 and 20 years.
The scale is tripled; officials clarify it is not QE
This measure, dubbed a “Liquidity Support Buyback,” is part of the Treasury’s recent efforts to deal with pressure in the bond market. Compared with the plan announced in August to increase the size to at least double—up to $4 billion—this buyback cap has again been raised to $6 billion, reaching more than three times the original plan (about $2 billion). The actual operation is expected to take place between 1:40 p.m. and 2:00 p.m. Eastern Time on September 10.
The Treasury emphasized that this is purely a routine debt management and liquidity support operation, aimed at smoothing the maturity structure and improving market conditions for older Treasuries that have poorer liquidity. This is fundamentally different from the Federal Reserve’s “quantitative easing (QE)” implemented by printing money, and it will not create new money supply for the market.
For cryptocurrency and stock investors, this operation was originally seen as a positive. Coin Bureau analysis suggests that if the repurchase can successfully bring down U.S. Treasury yields, it can effectively ease funding cost pressures and, in turn, provide upward momentum for the stock and cryptocurrency markets.
$BNB $ZEC
#美财政部拟回购最多60亿美元国债
#灰度ZcashETF资产突破5亿美元
#原油涨至7月来最高
Inflation gloom lingers, yields are pressured back to 4.85%
The U.S. Treasury announced it will carry out a large-scale bond repurchase operation on September 10, with up to $6 billion to be bought back in legacy government bonds with remaining maturities of between 10 and 20 years.
The scale is tripled; officials clarify it is not QE
This measure, dubbed a “Liquidity Support Buyback,” is part of the Treasury’s recent efforts to deal with pressure in the bond market. Compared with the plan announced in August to increase the size to at least double—up to $4 billion—this buyback cap has again been raised to $6 billion, reaching more than three times the original plan (about $2 billion). The actual operation is expected to take place between 1:40 p.m. and 2:00 p.m. Eastern Time on September 10.
The Treasury emphasized that this is purely a routine debt management and liquidity support operation, aimed at smoothing the maturity structure and improving market conditions for older Treasuries that have poorer liquidity. This is fundamentally different from the Federal Reserve’s “quantitative easing (QE)” implemented by printing money, and it will not create new money supply for the market.
For cryptocurrency and stock investors, this operation was originally seen as a positive. Coin Bureau analysis suggests that if the repurchase can successfully bring down U.S. Treasury yields, it can effectively ease funding cost pressures and, in turn, provide upward momentum for the stock and cryptocurrency markets.
$BNB $ZEC
#美财政部拟回购最多60亿美元国债
#灰度ZcashETF资产突破5亿美元
#原油涨至7月来最高
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