đšMAJOR: The U.S. Treasury is set for another liquidity buyback on October 1.
This follows the September 10 operation, when Treasury offered to buy up to $6 BILLION of 10- to 20-year bonds, triple the size of its previous long-dated buyback.
The goal is to improve liquidity in older, harder-to-trade Treasuries after a sharp bond selloff pushed long-term yields to multi-year highs.
Stronger Treasury demand can support bond prices and potentially ease yields, which would be a POSITIVE backdrop for stocks and crypto.
This is supportive for market liquidity, but it is not the same as Fed QE.
This follows the September 10 operation, when Treasury offered to buy up to $6 BILLION of 10- to 20-year bonds, triple the size of its previous long-dated buyback.
The goal is to improve liquidity in older, harder-to-trade Treasuries after a sharp bond selloff pushed long-term yields to multi-year highs.
Stronger Treasury demand can support bond prices and potentially ease yields, which would be a POSITIVE backdrop for stocks and crypto.
This is supportive for market liquidity, but it is not the same as Fed QE.
