The U.S. Treasury will enter the market tomorrow with a 4 billion repurchase operation
According to the Treasury Department’s official schedule, there will be a liquidity-support operation on October 6 totaling up to 4 billion, to purchase relatively short-term Treasury bonds with maturities between two and three years
Most importantly, this is not a one-off operation
The Treasury has increased the size of its long-term bond repurchase operations to at least 4 billion per operation since September, as part of a program aimed at improving liquidity in the Treasury bond market
And this is where the angle relevant to crypto comes in
Bond buybacks ≠ direct money printing
But they may affect Treasury market liquidity and financial conditions, so it’s important to monitor their impact alongside other liquidity flows
the following factors converge:
Treasury buybacks
lower yields
more flexible financial conditions
higher risk appetite
then high-risk assets, including cryptocurrencies, may benefit
I believe U.S. liquidity has begun to shift in a way that could become positive for cryptocurrencies in October
$BTC $ETH $BNB
According to the Treasury Department’s official schedule, there will be a liquidity-support operation on October 6 totaling up to 4 billion, to purchase relatively short-term Treasury bonds with maturities between two and three years
Most importantly, this is not a one-off operation
The Treasury has increased the size of its long-term bond repurchase operations to at least 4 billion per operation since September, as part of a program aimed at improving liquidity in the Treasury bond market
And this is where the angle relevant to crypto comes in
Bond buybacks ≠ direct money printing
But they may affect Treasury market liquidity and financial conditions, so it’s important to monitor their impact alongside other liquidity flows
the following factors converge:
Treasury buybacks
lower yields
more flexible financial conditions
higher risk appetite
then high-risk assets, including cryptocurrencies, may benefit
I believe U.S. liquidity has begun to shift in a way that could become positive for cryptocurrencies in October
$BTC $ETH $BNB
