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The U.S. Senate is headed for its first major vote next week on the CLARITY Act, a market-structure bill for digital assets. Republicans have released an amendment, but the bill’s path remains uncertain as disagreements over ethics provisions persist.
Crypto in America reported on September 11 that the Senate is scheduled to hold a cloture vote on debate over the CLARITY Act at 2:15 p.m. on September 15. Cloture requires 60 votes. With at least two Republican senators poised to oppose the measure, supporters need at least nine Democratic votes.
The central sticking point is the ethics provision. Republican Senator Thom Tillis and Democratic Senator Ruben Gallego proposed a bipartisan compromise in July that would bar federally elected officials and judges from issuing or endorsing digital assets. It would also require them to divest related financial interests or place them in a blind trust. The White House has so far not responded to the proposal, either publicly or privately, the report said.
A Republican amendment released recently would refine provisions on decentralized finance, or DeFi, and expand credit unions’ authority to handle digital assets. But it left untouched the ethics provision that has faced pushback from Democrats and some Republicans.
A stablecoin compensation provision is another variable. The American Bankers Association and the Independent Community Bankers of America are urging changes, saying that permitting interest-like rewards could drain deposits from community banks and curb their lending capacity. Republican Senators Jerry Moran and Josh Hawley have also indicated they could vote against the bill if the current language stays in place.
Treasury Secretary Scott Bessent, by contrast, wants the Senate to move the bill forward first and continue negotiating the disputed provisions afterward. He warned that failure to advance the legislation could send a negative signal about the U.S.’s competitiveness in digital-asset regulation and its ability to combat crypto-related crime.
Even if the bill passes the Senate, more hurdles remain before it can become law this year. The House has canceled voting sessions for the final two weeks of September, and both chambers are set to recess in October. That makes it increasingly likely that House action on the Senate amendment will slip to the lame-duck session in November.

The Kospi traded lower early Friday as surging oil prices and rising US Treasury yields weighed on investor sentiment. Selling was concentrated in large semiconductor stocks, which are sensitive to interest rates.
As of 9:07 a.m. on September 11, Samsung Electronics was down 3.81% from the previous session at 258,750 won. SK Hynix fell 4.05% to 1,778,000 won. Other semiconductor-related shares also weakened, with Samsung Electronics preferred shares down 4.29% and SK Square off 4.93%.
Domestic equities came under pressure after both oil prices and US Treasury yields jumped overnight. West Texas Intermediate crude for October delivery rose 6.69% on September 10 to settle at $102.48 a barrel. Brent crude for November delivery gained 6.34% to $107.63 a barrel.
The yield on the 10-year US Treasury note climbed above 4.95% during trading, reaching its highest level since October 2023. At the same time, the US producer price index for August remained elevated, reviving the possibility of another benchmark interest-rate increase at the next Federal Open Market Committee meeting.
Export data, however, remained firm. The Korea Customs Service said exports for September 1-10 totaled $35 billion, up 82.6% from a year earlier and the highest ever for the period.
Semiconductor exports surged 270.1% to $16.483 billion. Their share of total exports also widened to 47.1%, up 23.9 percentage points from a year earlier.

The U.S. Securities and Exchange Commission is moving to revise its rules to recognize blockchain ledgers as official records of securities ownership. The change could reshape the tokenized securities market by replacing a structure in which on-chain records and traditional shareholder registers are maintained in parallel.
CoinDesk reported on September 10 that the SEC last week unveiled a proposal to update transfer-agent rules that have been in place for about 50 years. If adopted, the changes would allow electronic databases, including blockchain ledgers, to qualify as the “master securityholder file,” the official ledger of securities ownership.
In today’s tokenized securities market, it is common to keep blockchain-based token ownership records separate from legally effective shareholder lists. That can lead to ownership disputes if the two sets of records diverge. In bankruptcy or insolvency, the resulting rights issues could become even more complex.
Joris Delanoue, chief executive officer of SEC-registered on-chain transfer agent Fairmint, said the master shareholder file was once a paper document and is now maintained as a database. In his view, the proposal recognizes that a blockchain is not just a copy of an existing database, but can itself be the official record.
Eli Cohen, chief legal officer at fund-tokenization firm Centrifuge, said the proposal could consolidate the existing dual-ledger structure into a single process. He said the current setup is not only inefficient, but could also create substantial confusion in the event of a bankruptcy or insolvency.
Recognition of blockchain as an official ledger would not eliminate existing rules for tokenized securities. Requirements covering investor identity checks, holding eligibility and transfer restrictions would remain in place. The related controls could be built into tokens or smart contracts.
The role of transfer agents would also remain intact. Some procedures, including the handling of a shareholder’s death or inheritance, legal notices and mail receipt, would still need to be carried out directly by a transfer agent. Delanoue added that anyone maintaining an official ownership record must have the full functions of a transfer agent.
The SEC plans to collect public comments on the proposal for 60 days. The deadline for submissions is set for early November.

10-year yield tops 4.9%, nears 5%
30-year yield hits 5.35%, sets fresh high
PPI beats estimates as oil rises
ECB rate hike adds to pressure
"August CPI to drive rate decision"
Long-term U.S. Treasury yields are surging as investors confront inflation risks from rising crude prices, the European Central Bank's rate increase and U.S. producer prices that came in above market expectations. Interest-rate futures now imply a 71.8% chance that the Federal Reserve will raise rates on September 16. Markets are also watching the August consumer price index, due on September 11, as a decisive factor in the Fed's rate decision.
According to Bloomberg, the 30-year U.S. Treasury yield reached 5.35% on September 10, the highest since June 2007, when it stood at 5.44%. The benchmark 10-year yield also climbed above 4.9%, its highest level since October 2023, bringing it closer to 5%.
BMO Capital said expectations are resurfacing that the 10-year Treasury yield will return to the 5.0% level. A temporary move above 5% would not be much of a surprise, it added.
The immediate catalyst for the rise in long-dated yields was the August producer price index released by the U.S. Labor Department that day. PPI rose 5.4% from a year earlier, slightly above the market consensus of 5.3%. The July increase was 4.8%.
Inflation concerns tied to higher oil prices also added momentum to the rise in bond yields. On the New York Mercantile Exchange, October West Texas Intermediate futures traded up 4.19% from the previous settlement at $100.07 a barrel. On ICE Futures Europe in London, November Brent crude futures stood at $105.03 a barrel on September 11. The gains came amid escalating tensions between the U.S. and Iran and growing concern that Houthi rebels could block the Bab el-Mandeb Strait.
The ECB's rate hike, along with its signal that further increases remain possible, added another source of upward pressure on U.S. Treasury yields. U.S. President Donald Trump's pledge to give Americans $5,000 if Republicans win the midterm elections also stoked concern over a wider fiscal deficit and higher inflation.
CME FedWatch data show the market is pricing in a 71.8% chance of a Fed rate hike in September. That is more than 10 percentage points higher than a day earlier.
The August CPI, a key variable in the Fed's rate decision, will be released on the morning of September 11. The index measures changes in prices paid by consumers for goods and services. Markets are particularly focused on how much core CPI, which excludes food and energy, increased.
Hwang Jeong-su, New York correspondent, Korea Economic Daily, hjs@hankyung.com

The U.S. consumer price index for August is due Sept. 11, and the result could influence the Federal Open Market Committee’s rate decision next week.
Walter Bloomberg reported on Sept. 10 that August CPI is forecast to rise 0.4% from the previous month, accelerating from 0.1% in July. Core CPI is projected to increase 0.2% on the month. From a year earlier, headline CPI is expected to rise 3.4% and core CPI 2.4%.
The faster increase in headline inflation is likely to be driven by energy prices. Energy prices are projected to rebound about 2.5% in August after falling 1.5% in July, while airfare and lodging costs could also add upward pressure. By contrast, gains in medical costs and used-car prices are expected to slow, and apparel prices are forecast to decline.
If core CPI rises 0.3% from the prior month, the odds of a 25-basis-point Fed rate increase could increase. A 0.2% reading would likely leave uncertainty over the rate decision intact. If it comes in at 0.1%, expectations for a pause could strengthen. The federal funds futures market is currently pricing in about 15.5 basis points of additional tightening by next week and about 37 basis points by year-end.

Economist Peter Schiff criticized President Donald Trump, saying Trump had promised $5,000 to every US adult if Republicans win the midterm elections.
Cointelegraph reported on September 10 that Schiff characterized the proposal as an attempt to win voters' support.
Schiff said Trump had effectively pledged to pay $5,000 to every US adult on the condition that Republicans prevail in the midterms.
He described the cash-payment pledge as an attempt to "buy votes."

U.S. prediction-market platform Kalshi has launched perpetual futures tied to gold and silver prices.
CNBC reported on September 10 that Kalshi recently received approval from the Commodity Futures Trading Commission to list gold and silver perpetual futures and began trading the products the same day. Kalshi had applied to the CFTC in July for approval to launch the contracts.
Udesh Jha, chief risk officer at KalshiClear, Kalshi's clearinghouse, said the company selected gold and silver for its next perpetual futures product because of strong investor demand for the metals. "Precious metals, especially gold and silver, offer a compelling investment case related to inflation," Jha said.
That demand had already shown up in Kalshi's commodity-related prediction market contracts. Cumulative trading volume in commodity-based prediction contracts tied to metals and crude oil topped $400 million within seven months of launch. That was about half the time it took crypto-based prediction market contracts to reach the same volume.
Kalshi began offering crypto perpetual futures in the U.S. after securing CFTC approval for the products in May. The company said cumulative notional trading volume in crypto perpetual futures has reached $44 billion.
Separately, Kalshi applied in August for approval to launch perpetual futures based on U.S. stock indexes, copper and foreign exchange.

South Korea needs to move quickly to overhaul rules for digital-asset exchange-traded products, or ETPs, and on-chain products to stay competitive as new financial instruments emerge rapidly in global markets, speakers at a parliamentary seminar said. Lawmakers said they shared that view and would push to pass the Digital Asset Framework Act by year-end.
A National Assembly seminar titled “Digital Asset Financial Innovation Cases and Response Strategies” was held on Sept. 10 at Post Tower in Seoul’s Yeouido district. The event was hosted by Ahn Do-geol, floor vice leader of the Democratic Party, and Democratic Party lawmaker Min Byung-duk, and organized by the Korea Fintech Industry Association.
Digital-Asset Industry Left Pacing Amid Regulatory Vacuum
Kim Hyo-bong, a lawyer at Bae, Kim & Lee LLC, said the biggest problem in South Korea now is regulatory uncertainty. Neither securities firms nor digital-asset businesses have clear standards on which licenses would allow them to provide the services they want to offer, he said.
Kim said the US is rapidly expanding not only digital-asset exchange-traded funds, or ETFs, but also products that combine traditional financial instruments with blockchain. The US Securities and Exchange Commission has recently become more innovation-friendly, including by rolling out crypto regulatory proposals, he said. In the US, regulators listen to issues raised by the industry, provide feedback and clarify rules.
Speakers also called for infrastructure to support the launch of products such as ETFs backed by digital assets. Lim Seung-jin, a research fellow at FnGuide, said South Korea needs both a legal basis and infrastructure to support operations and investor protection if it wants to introduce digital-asset ETFs. He said the country should start with simpler spot ETFs, verify that pricing and creation-redemption systems operate reliably, and then expand in stages to multi-asset and staking products.
They also said South Korea has been unable even to attempt fast-growing on-chain finance businesses because of the regulatory gap. Bok Jin-sol, research lead at Populus, said a new asset-management market centered on on-chain vaults is expanding quickly overseas, but in South Korea it is not even clear how such services should be classified as a financial product or business. On-chain vaults are blockchain-based asset-management services that manage users’ digital assets through smart contracts.
Bok added that the existing regulatory framework alone is not enough to accommodate new services. South Korea needs an institutional foundation that allows related businesses to be tested and developed.
Min Byung-duk: Framework Act to Enter Full Review From November
Lawmakers also said South Korea’s efforts to institutionalize digital assets have failed to keep pace with changes in global markets and pledged to speed up legislation. Min said he felt sorry that domestic lawmaking had lagged while new products were being planned globally. Rather than waiting for a perfect law, South Korea should move quickly with one that scores 70 to 80 out of 100, he said.
Min in particular stressed that the Digital Asset Framework Act should be handled within the year. A public hearing will be held as early as this month, and after the National Assembly’s annual audit ends, lawmakers will begin handling the bill in earnest around November, he said. As the market continues to evolve, the priority is to establish an institutional framework first and improve shortcomings later. He also urged the industry to present proposals the broader sector can accept, rather than focusing on individual interests.
Ahn also said the institutionalization of digital assets and related financial products can no longer be postponed. While major countries are moving to take the lead in financial markets tied to digital assets, South Korea remains in a policy vacuum, he said. Domestic investors’ money is flowing to overseas or non-regulated markets beyond the protection of South Korean law, while innovative local companies are losing growth opportunities.
‘No More Time to Spare’: Call Grows for Swift Passage
The discussion session that followed also identified swift enactment of the Digital Asset Framework Act as the most urgent task.
Oh Jong-wook, chief executive officer of Wavebridge, said even a 70-to-80-point version of the law needs to be enacted so the industry can debate, revise and help shape enforcement decrees afterward. Even so, having a law in place would help the market far more than continued delay.
Kim Nam-woong, chief executive officer of Populus, said US ETFs were not perfect from the start either, and the current market was built through continued regulatory revisions. South Korea, he said, should begin first and keep making changes rather than fixating on a perfect law.
Speakers also called for broader use of regulatory sandboxes in the digital-asset market. Kim said authorities should allow limited real-world testing and continued data-sharing so supervisors can identify risks. He added that South Korea should consider including the Act on Reporting and Use of Specific Financial Transaction Information, the Digital Asset User Protection Act and the planned Digital Asset Framework Act within the scope of regulatory sandbox programs.

Parts, Materials Stocks Including TSE Surge
Samsung, SK Hynix Buybacks Help Cushion Losses
South Korea’s benchmark stock market was expected to swing sharply as quadruple witching coincided with large-scale ETF rebalancing, but the Kospi still managed to hold above 7,000. The Kosdaq ended higher as some semiconductor parts, materials and equipment stocks, including Jusung Engineering and TSE, posted sharp gains.
The Kospi closed down 0.25% at 7,033.92 on September 10. The index fell as low as 6,898.45 at one point, but cut its losses in afternoon trading and defended the 7,000 level. Foreign investors were net sellers of 2.7504 trillion won ($1.99 billion), while retail investors and institutions were net buyers of 1.0931 trillion won ($792 million) and 3.6 billion won ($2.6 million), respectively. Other corporations were net buyers of 1.6496 trillion won ($1.19 billion). Retail investors turned net buyers for the first time in six trading days, while institutions extended their net-buying streak to six sessions.
Among large-cap stocks, Samsung Electronics fell 0.19% and SK Hynix lost 0.16%. Both shares recouped most of their intraday declines after falling more than 2% earlier in the session.
The securities industry had expected steeper declines in the two chipmakers on September 10 as stock index futures and options expired on the so-called quadruple witching day, while large-scale ETF rebalancing took place ahead of a regular reshuffle of KRX sector indexes. In the KRX Semiconductor Index, SK Hynix’s weighting had risen to the 36% range, while Samsung Electronics’ had climbed to the 22% range. Because the regular reshuffle caps each constituent at 20%, the market had expected heavy mechanical selling as the two stocks’ weightings were reduced. Buybacks by Samsung Electronics and SK Hynix, however, helped other corporations support the market’s downside.
Oil refining and shipping stocks also helped defend the index. As geopolitical tensions in the Middle East escalated and Brent crude rose above $100 a barrel, buying poured into Korea Petroleum, which jumped 10.30%, and Heung-A Shipping, which gained 8.01%.
The Kosdaq closed up 0.79% at 836.92. The advance was driven by sharp gains in semiconductor parts, materials and equipment stocks centered on Jusung Engineering and TSE, whose weightings in the KRX Semiconductor Index increased. Jusung Engineering rose 7.02% and TSE soared 14.15%. TES, newly added to the index that day, also edged up 0.39%. Among major Kosdaq stocks, EcoPro BM climbed 3.31%, Simmtech added 0.98% and Fadu advanced 6.59%, helping lift the index. By contrast, other parts, materials and equipment names including Wonik IPS, down 1.08%, and EO Technics, off 3.19%, fell.
Oh Hyun-ah, Hankyung.com reporter 5hyun@hankyung.com

Commodity Rally May Continue for Now
The risk is rising that the seven-month war between the US and Iran will become a prolonged conflict. Some White House officials see it lasting until early 2029, at the end of President Donald Trump’s term. That is also fueling views that commodity prices will remain strong unless the global economy falls into recession.
The Wall Street Journal reported on September 9, citing people familiar with the matter, that senior White House aides have said privately that the war with Iran could continue throughout Trump’s presidency. Vice President JD Vance and Secretary of State Marco Rubio were among those who discussed the war with Trump in the Oval Office and the Situation Room, taking into account the possibility that Iran would continue to resist.
Those discussions also covered a scenario in which the war lasts until January 2029, when Trump’s term ends. The private talks took place even as Trump has insisted the war would end as soon as the November midterm elections are over.
Trump had previously said the war would end soon. But the Journal said the private acknowledgment by some of the president’s closest aides that the military conflict could last for years undercuts his public assurances.
The Pentagon has also begun preparing for the possibility of a long war. The Journal reported that the Defense Department plans to extend the deployment of some air-defense units in the Middle East without a fixed end date. Officials are also preparing to send the III Marine Expeditionary Force to the region this fall. Air Force fighter squadrons in the Middle East are shifting from time-limited temporary deployments to rotational deployments designed to maintain a steady level of forces.
Iran’s leadership is also preparing for a prolonged conflict. A senior Iranian official told Bloomberg that the country is bracing for a more intense war. Iran’s leaders view a war with the US as a threat to the country’s survival and believe they have no choice but to keep fighting even if the economic pain worsens.
Han Myeong-hyeon, Hankyung.com reporter wise@hankyung.com

Ahn Do-geol, floor vice leader of the Democratic Party of Korea, said South Korea should no longer delay putting digital assets and related financial products on a formal regulatory footing. His remarks suggest growing pressure to speed up legislation to bolster the competitiveness of the country’s digital-asset industry.
Ahn made the comments in a congratulatory address at a National Assembly seminar titled “Cases of Digital-Asset Financial Innovation and Response Strategies,” held on September 10 at Post Tower in Seoul’s Yeouido district. The event was co-hosted by Ahn and lawmaker Min Byung-deok.
Alongside a basic law on digital assets, South Korea needs to build an ecosystem that allows stablecoins to circulate and trade in the market, he said.
Ahn highlighted the rapid growth of new financial products that use digital assets as underlying assets. Digital assets are moving beyond simple trading and are being absorbed into the heart of global capital markets through traditional financial wrappers such as exchange-traded products, or ETPs, and exchange-traded funds, or ETFs, he said.
Major markets including the US, the UK and Hong Kong already allow financial products tied to spot and futures digital assets, he said. Japan is also nearing the introduction of spot digital-asset ETFs after revising its Financial Instruments and Exchange Act in July.
By contrast, South Korea still faces a regulatory vacuum around such products, Ahn said. In a market where borderless transactions move freely through global financial networks, leaving the sector unattended because of that gap is clearly producing side effects, he said.
Domestic investors’ funds are flowing to overseas markets or markets outside the regulatory system, where they are not protected by South Korean law. Innovative South Korean companies that could lead the future digital-asset ecosystem are also losing growth opportunities, while the global competitiveness of the country’s financial industry is weakening.
Institutionalizing digital assets and financial products based on them can no longer be postponed, he added.
Ahn also stressed the importance of stablecoins in preparing for the age of artificial intelligence. Rapid change in the AI era will require financial and payment infrastructure to support it, and stablecoins will play that role, he said.
Still, he said bringing digital-asset financial products into the regulatory framework does not mean unconditional deregulation. South Korea needs a carefully calibrated system that takes into account high price volatility, wider pricing gaps caused by the time mismatch between the 24-hour digital-asset market and traditional securities markets, and on-chain risks such as hard forks, he said.
He added that he would work toward a balanced framework.

Net outflows continued from U.S. spot-Bitcoin exchange-traded funds.
According to Trader T, U.S. spot-Bitcoin ETFs recorded combined net outflows of $120.24 million on September 9. That marked a second straight trading day of net withdrawals.
Among individual products, Ark Invest's ARKB posted the largest net outflow at $77.98 million. BlackRock's IBIT also saw $19.53 million leave the fund.
By contrast, Morgan Stanley's MSBT recorded net inflows of $4.49 million. The remaining products saw no net inflows or outflows.

A U.S. Senate procedural vote on Sept. 15 could determine the fate of the CLARITY Act, a market-structure bill for digital assets, as the crypto industry and banks mount a last-minute lobbying push.
Reuters reported on Sept. 9 that the Senate is set to hold the procedural vote on Sept. 15. The result could effectively decide the bill’s trajectory, but its outlook remains unclear as Democrats and some Republicans argue it lacks sufficient safeguards.
The CLARITY Act would define which digital tokens are classified as securities or commodities and clarify the jurisdiction of regulators. The Trump administration is also strongly backing the measure.
The crypto industry used the congressional recess, which began on Aug. 8, to intensify outreach in lawmakers’ home states. Stand With Crypto, a Coinbase-backed advocacy group, placed opinion pieces in local media in Oklahoma, Kentucky and Kansas urging passage of the bill, and held related events in Iowa and Michigan.
The group’s supporters sent lawmakers about 50,000 calls and emails in August alone. Stand With Crypto says it has about 3 million supporters and is also arranging in-person meetings with lawmakers.
The Blockchain Association also launched a campaign website in late July urging support for the CLARITY Act, allowing individuals and companies to send letters directly to senators.
A key reason the industry is pushing to advance the bill now is the November midterm election. If Democrats retake the House majority, passage could become even more difficult. The crypto industry has already spent at least $190 million targeting the election.
Banks, by contrast, are trying to block the bill, citing its potential impact on the financial system. Democratic lawmakers say the measure lacks adequate anti-money-laundering and ethics safeguards. Some Republicans, including Senators James Lankford and Mike Rounds, have also raised concerns that some digital tokens could compete with bank deposits and weaken lending capacity.
The Independent Community Bankers of America has been particularly opposed to the bill’s stablecoin provisions. It urged community bank executives to meet directly with senators visiting their home states during the recess. Its lobbying effort extended beyond members of the Senate Banking Committee, which approved the bill in May, to other senators as well.
Because the bill needs 60 votes to clear the Senate, additional Democratic support will be critical. With the crypto industry and banks sharply at odds, the Sept. 15 procedural vote could prove the biggest turning point yet for the CLARITY Act.

Today’s Key Economic Events
▶ Sept. 10 (Thu.): △ Germany August consumer price index (CPI, 3 p.m.) △ European Central Bank (ECB) interest-rate decision (9:15 p.m.) △ US August producer price index (PPI, 9:30 p.m.) △ US initial jobless claims (9:30 p.m.) △ ECB press conference (9:45 p.m.) △ US August existing home sales (11 p.m.)
Today’s Key Cryptocurrency Events
▶ Sept. 10 (Thu.): △ None

International oil prices rose again after Iran warned it would step up its offensive if U.S. attacks continue, fueling concern over potential disruptions to energy supplies through the Strait of Hormuz.
Bloomberg reported on September 9 that West Texas Intermediate climbed above $97 a barrel. The U.S. benchmark had jumped 3.3% a day earlier, its biggest one-day gain in a week. Brent crude also traded above $101 a barrel, ending above $100 for the first time since July.
A senior Iranian official said Tehran would not retreat in the face of a U.S. maritime blockade and would broaden retaliatory attacks if Washington continues striking Iranian territory. Iran has also indicated it is prepared for a more intense war.
Fighting in the Middle East has intensified again over the past week, bringing an end to a stretch of relative calm. Renewed concern over possible oil supply disruptions has added upward pressure to crude prices.
U.S. President Donald Trump also ruled out a near-term easing in tensions. He said the war is likely to end only after the November midterm elections and that gasoline prices are unlikely to fall meaningfully before then.
The market is closely tracking oil shipments through the Strait of Hormuz. Before the war, about 20% of the world's oil and liquefied natural gas passed through the waterway.
Some crude is still being exported from the Persian Gulf via the Strait of Hormuz, but ships remain exposed to the risk of continued attacks. Some tankers were also said to be sailing with their Automatic Identification System, or AIS, turned off.

The U.S. Treasury raised the cap on its long-term bond buyback to $6 billion, triple the original plan, but the move fell short of market expectations, sending the 10-year Treasury yield as high as 4.85%.
Bloomberg reported on Sept. 9 that the Treasury set the size of its long-term nominal bond buyback scheduled for Sept. 10 at up to $6 billion. That is three times the previously planned $2 billion.
Treasuries continued to sell off after the announcement. The 10-year yield rose to 4.85% during the session, nearing its highest level since 2023. Concerns about inflation stoked by surging oil prices, expectations for Federal Reserve rate hikes and large fiscal deficits weighed on the market.
Some in the market had expected a larger buyback. Treasury Secretary Scott Bessent had publicly said earlier that purchases could exceed $4 billion per operation, fueling expectations of a much bigger expansion.
Steven Zeng, a strategist at Deutsche Bank, said the $6 billion size failed to deliver the "shock and awe" investors had expected. "It's like the Treasury has created a monster it now has to keep feeding," he said.
The Treasury said each of the six remaining scheduled long-term bond buybacks could total at least $4 billion. That matches the level it presented when it first announced the expanded buyback plan on Aug. 19.
Bessent recently stressed that the purpose of the buybacks is not to change the fair level of Treasury yields. Instead, the focus is on easing market volatility, preventing negative sentiment toward the Treasury market from becoming entrenched and improving liquidity.
Evercore ISI said the announcement suggests Bessent is acknowledging limits to the role buybacks can play. The Treasury is unlikely to be able to keep resisting the direction of yields set by the economy's fundamentals.
The Treasury's $39 billion auction of 10-year notes the same day drew a high yield of 4.834%, the highest level since 2007.
Still, the buyback program could be expanded again. The Treasury announced last month's policy to increase long-term bond buybacks separately from its regular quarterly refunding plan, and Bessent has described the effort as a "Treasury twist" aimed at stabilizing long-term yields.
Joseph Furtel, a portfolio manager at Neuberger Berman, said Bessent has been signaling through both words and actions that investors should not press too aggressively on 30-year Treasuries. He added that the buyback size could rise into the tens of billions of dollars and that there is no clear upper limit.

Iran’s central bank has eased foreign-exchange rules to allow the use of cryptocurrencies including Bitcoin for trade settlement, in a move to bypass U.S. economic sanctions, the Financial Times reported on September 9.
The Central Bank of Iran recently relaxed the rules to encourage domestic companies to repatriate earnings generated overseas, the FT said.
The change allows Iranian companies to settle cross-border trade payments in Bitcoin or Tether through domestic cryptocurrency exchanges.
Exporters can also use foreign-currency earnings directly to pay for imports rather than selling them on a government foreign-exchange platform at the official rate. Previously, exporters had to send a large share of their overseas foreign-currency earnings back to Iran and exchange them at the official rate through a government-run platform.
The measure gives companies an option to settle trade payments without going through the traditional finance, or TradFi, system.
The U.S., meanwhile, is stepping up pressure on Iran’s crypto financing networks. In June, the Office of Foreign Assets Control, the U.S. Treasury Department’s sanctions arm, sanctioned four Iranian cryptocurrency exchanges, including Wallex and Nobitex, as part of Operation Economic Fury.
Blockchain analytics firm TRM Labs said in an analysis released in June that $3.84 billion of fund flows occurred over the past seven years between global exchange CoinEx and Iranian entities targeted by U.S. sanctions.

Germany is pushing a plan to levy a 25% tax on gains from cryptocurrency trading.
BlockBeats and other outlets reported on September 9 that a recent working-level draft on crypto taxation prepared by Germany’s Federal Ministry of Finance would classify profits from crypto sales as capital income, similar to stock gains, and apply a flat 25% tax rate regardless of how long the assets were held.
The new tax framework could be introduced as early as 2028. The Finance Ministry projects additional tax revenue of 160 million euros in 2028, rising to 350 million euros by 2031.
If adopted, the revision would mark a shift in Germany’s tax exemption for certain crypto gains. Under the current system, profits earned by individual investors from selling cryptocurrencies such as Bitcoin after holding them for more than one year are exempt from tax. Gains from crypto sold within one year are subject to individual income tax rates.
German authorities reportedly view cryptocurrencies as financial assets with high liquidity and a speculative character, making it necessary to apply the same tax treatment used for stock trading gains.
The proposal is still at the Finance Ministry draft stage. Its details could change as it goes through consultations within the government, cabinet approval and parliamentary review.

U.S.-Iran, Saudi-Houthi Clashes
Wall Street Says Oil Could Reach $150 in the Fourth Quarter
International oil prices surged to the brink of $100 a barrel on Sept. 8. The move was driven by mounting concern over supply disruptions after Saudi Arabian energy facilities were attacked by the Iran-aligned Houthi rebels.
Brent crude for November settlement rose 92 cents, or 0.95%, to settle at $97.92 a barrel on London's ICE Futures Europe exchange. On Sept. 9, it traded above $100 intraday for the first time since July 24. West Texas Intermediate for October delivery gained $1.55, or 1.69%, to settle at $93.03 a barrel on the New York Mercantile Exchange.
If the conflict between Saudi Arabia and the Houthis intensifies, the risk of a shutdown of the Bab el-Mandeb Strait will increase. The waterway handles about 5% of global oil shipments. Global investment banks have raised their fourth-quarter oil price forecasts to as high as $150 a barrel. Kim Fustier, HSBC's lead energy analyst, said fears that crude supply shortages could last longer than expected are now being reflected more fully in prices.
Oil Could Reach $120 if Energy Facilities Are Hit Again
Middle East Escalation Pushes Prices Above $100 Intraday, Though North American Supply May Limit Gains
The Houthi rebels in Yemen, widely believed to be backed by Iran, attacked four cities in southern Saudi Arabia -- Abha, Khamis Mushait, Jazan and Najran -- as well as facilities operated by state oil company Aramco on Sept. 8, using drones and missiles. Parts of the energy facilities caught fire, forcing operations to halt, and 73 people were injured, according to the report.
Since the war with Iran began, Saudi Arabia has moved crude across the Arabian Peninsula by pipeline to its western Red Sea coast for export. After the Houthis struck western energy facilities, concern grew that even the route bypassing the Strait of Hormuz might no longer be safe.
The situation around the Strait of Hormuz has also worsened. U.S. forces attacked a tanker linked to Iran's Islamic Revolutionary Guard Corps on Sept. 8, and Iran responded with retaliatory military operations targeting U.S. destroyers and bases. Iran also designated a maritime blockade zone in the Strait of Hormuz and warned of attacks on energy facilities and oil tankers.
That has added weight to the view that average oil prices in the fourth quarter will rise well above $100 a barrel. Major investment banks have recently raised their Brent crude forecasts. Bank of America said in a report released on Sept. 8 that Brent could trade at $95 to $120 a barrel through year-end if lower-level clashes that constrain oil supply continue.
Goldman Sachs raised its year-end Brent forecast by $5 from its previous $80 estimate, citing the possibility that shipping disruptions could last into next year. The bank said Brent could reach $120 if attacks by Iran and the Houthi rebels on vessels intensify. David Fyfe, chief economist at Argus, said current prices show supply conditions are extremely tight.
Some in the market, however, believe oil will not rise to $100 to $120 a barrel. They point to smaller-than-feared declines in crude shipments through the Strait of Hormuz and alternative routes, rising output from non-OPEC producers such as the U.S. and Canada, and a structural decline in China's oil demand.
Hwang Jeong-su, New York correspondent / Kim Dong-hyun, reporter hjs@hankyung.com

The Japanese yen has extended its strength into the 153-per-dollar range, but major Wall Street firms are split on how much further it can climb.
Bloomberg reported on Sept. 9 that the yen rose as much as 0.5% intraday against the dollar to 153.25. It had reached its strongest level since mid-February in the previous session.
Expectations for a Bank of Japan rate increase have underpinned the yen's recent advance. The BOJ is said to be considering raising its benchmark rate by 0.25 percentage point this month in response to inflation pressures.
Even so, some market participants say a substantial amount of tightening expectations has already been priced into the exchange rate. That suggests the BOJ would need to deliver a more hawkish signal than markets expect for the yen to strengthen further.
Eric Nelson, a strategist at Wells Fargo, pointed to the BOJ rate path already reflected in markets and said it would be very difficult for the central bank to surpass those expectations. Even if a rate hike goes ahead, the yen's gains may remain limited unless expectations for further tightening increase meaningfully.
JPMorgan highlighted the possibility that yen strength itself could reduce the need for additional BOJ rate increases. Meera Chandan, co-head of global FX strategy at JPMorgan, said Japanese authorities would want to avoid not only excessive yen weakness but also excessive strength. As dollar-yen approaches the low-150s, she said, the hurdle for further declines is likely to rise.
Bank of America took the opposite view. It said the yen could find additional momentum if the BOJ accelerates the pace of rate increases. Alex Cohen, a foreign-exchange strategist at BofA, said faster BOJ rate hikes are a key precondition for further yen strength. If the currency holds near current levels, repatriation of overseas funds by Japanese exporters could also become a fresh source of support.
Manulife Investment Management also sees room for continued yen gains if the BOJ confirms the possibility of additional tightening. The key question, the firm said, is what signal the BOJ sends on the possibility of a second additional rate increase before year-end.
Federal Reserve policy is another variable. Citigroup said next week's Fed rate decision will shape the yen's near-term direction.
Citigroup strategists said the current decline in dollar-yen could continue toward 152. However, if the Fed were to raise rates, they expect it would be difficult for dollar-yen to settle sustainably below 155.