🚨 HUGE: The US Treasury just bought back $6 BILLION of its own debt, taking October's total to $26.08 BILLION.
On October 27, Treasury targeted bonds with 20 to 30 years remaining and accepted the full $6 billion maximum from $10.75 billion offered, across six of 35 eligible issues. It paid between 52 and 71 cents on the dollar for the old, low-coupon bonds, about $3.8 billion in cash. It was the fourth operation to fill its entire limit.
Treasury calls these operations liquidity support, aimed at helping dealers offload older, thinly traded bonds and improving trading conditions. The program was expanded in August, when Treasury said it would at least double long-dated buybacks to $4 billion or more per operation.
The market response has been muted. The 10-year yield hit 5.342% on October 1, its highest since April 2002, as Treasury filled its cap, and long-term yields haven't clearly fallen on days when the buybacks maxed out. Bitcoin didn't get the 7% pop it enjoyed on the August announcement and slipped below $80,000, because this one was widely expected.
All eyes now turn to the quarterly refunding on November 4, when Treasury will provide more detail on future buyback sizes.
At $6 billion a shot, buybacks are plumbing, not policy. Whether they're enough to settle a market worried about supply is still an open question.
#Treasury #Bonds #Fed #Markets #Economy
$BTC $SOL $CL
On October 27, Treasury targeted bonds with 20 to 30 years remaining and accepted the full $6 billion maximum from $10.75 billion offered, across six of 35 eligible issues. It paid between 52 and 71 cents on the dollar for the old, low-coupon bonds, about $3.8 billion in cash. It was the fourth operation to fill its entire limit.
Treasury calls these operations liquidity support, aimed at helping dealers offload older, thinly traded bonds and improving trading conditions. The program was expanded in August, when Treasury said it would at least double long-dated buybacks to $4 billion or more per operation.
The market response has been muted. The 10-year yield hit 5.342% on October 1, its highest since April 2002, as Treasury filled its cap, and long-term yields haven't clearly fallen on days when the buybacks maxed out. Bitcoin didn't get the 7% pop it enjoyed on the August announcement and slipped below $80,000, because this one was widely expected.
All eyes now turn to the quarterly refunding on November 4, when Treasury will provide more detail on future buyback sizes.
At $6 billion a shot, buybacks are plumbing, not policy. Whether they're enough to settle a market worried about supply is still an open question.
#Treasury #Bonds #Fed #Markets #Economy
$BTC $SOL $CL
