$950B Treasury Liquidity Bomb: Bullish for Bitcoin or a Warning Sign for Traders?
- Treasury doubled long-dated bond buybacks to at least $4B per operation.
- Bitcoin traders are watching 10Y and 30Y yields for the next market signal.
- Gold topped $4,650 as weaker yields and DXY revived fiscal-stress concerns.
The U.S. Treasury’s expanded bond-buyback program has put a roughly $950 billion government cash balance at the center of a market test, as traders weigh whether lower long-term yields could support Bitcoin, stocks and gold or whether the policy could deepen concerns about U.S. fiscal credibility.
Treasury doubled its planned long-dated buybacks from $2 billion to at least $4 billion per operation on Aug. 19, with purchases scheduled from Sept. 9 through Nov. 4, while officials said the Treasury General Account remains available as a potential funding source.
The announcement followed a rise in the 30-year Treasury yield to a 19-year high.…
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