Overview
- The Treasury announced on Wednesday that it will at least double the maximum size of each long‑dated buyback from $2 billion to $4 billion and run the program from Sept. 9 through Nov. 4.
- Markets reacted quickly with the dollar weakening, long‑term yields falling, and investors shifting into non‑dollar assets; bitcoin rose above $77,000 and gold climbed into the mid‑$4,000s.
- Bitcoin’s rally was amplified by a large short squeeze that CoinGlass says forced the liquidation of more than $4 billion in bearish crypto positions.
- Analysts warn the buybacks are small relative to the roughly $30–40 trillion Treasury market so the move may only provide temporary yield relief and could constrain Fed policy if expanded.
- The action came as U.S. public debt topped $40 trillion and was paired with pro‑crypto signals from the White House and the CFTC, which may have strengthened demand for crypto and gold and could shape near‑term market flows.