$BTC U.S. Treasury directly steps up its buyback today!
Maximum buyback: $6 billion in U.S. Treasuries.
Nearly 3 times the size of the original plan!
Targeting 10–20 year long-dated bonds.
Treasury liquidity pressure in U.S. Treasuries is too high, so the Treasury Department is stepping in again!
Today, the U.S. Treasury plans to repurchase up to $6 billion of 10–20 year Treasury notes, but the prior cap for such long-end repurchases was only $2 billion—effectively expanding it to about 3 times. The core purpose stated by the Treasury is still to improve liquidity in the long-term Treasury market; however, the $6 billion figure is only the maximum amount, and the actual purchases may be lower than this number.
The key point for BTC isn’t “$6 billion of liquidity,” because Treasury buybacks are not Fed QE. What really matters is the yield on long-end U.S. Treasuries: if the buyback improves liquidity and eases long-dated bond sell pressure, yields could fall accordingly, and only then would the high-rate pressure facing BTC and risk assets truly ease. Similar buybacks in the past did not prevent yields from continuing to rise.$BTC
Maximum buyback: $6 billion in U.S. Treasuries.
Nearly 3 times the size of the original plan!
Targeting 10–20 year long-dated bonds.
Treasury liquidity pressure in U.S. Treasuries is too high, so the Treasury Department is stepping in again!
Today, the U.S. Treasury plans to repurchase up to $6 billion of 10–20 year Treasury notes, but the prior cap for such long-end repurchases was only $2 billion—effectively expanding it to about 3 times. The core purpose stated by the Treasury is still to improve liquidity in the long-term Treasury market; however, the $6 billion figure is only the maximum amount, and the actual purchases may be lower than this number.
The key point for BTC isn’t “$6 billion of liquidity,” because Treasury buybacks are not Fed QE. What really matters is the yield on long-end U.S. Treasuries: if the buyback improves liquidity and eases long-dated bond sell pressure, yields could fall accordingly, and only then would the high-rate pressure facing BTC and risk assets truly ease. Similar buybacks in the past did not prevent yields from continuing to rise.$BTC