S&P 500 Snaps Three-Day Losing Streak After Treasury Steps In to Calm Bond Market

TLDR

• The US Treasury announced it will at least double purchases of longer-dated government debt starting in September, pushing yields lower
• Bitcoin surged over 9% to hit $70,000 for the first time since early June
• The S&P 500, Dow, and Nasdaq each gained 0.2% on Wednesday, snapping a three-day losing streak
• Federal Reserve minutes from the July meeting showed three officials dissented in favor of a rate hike, signaling a hawkish tone
• US national debt crossed $40 trillion as Trump threatened economic warfare against Iran

Bitcoin hit $70,000 for the first time since early June after the US Treasury made a surprise move to buy more long-dated government bonds. Stocks steadied, and Treasury yields pulled back.

The Treasury said it would at least double its purchases of longer-dated government debt starting in September. That announcement helped calm a bond market selloff that had been rattling equities for days.

The 10-year Treasury yield fell around 5 basis points to 4.65%. The 30-year yield dropped 9 basis points to 5.19%. Lower yields tend to ease pressure on risk assets like stocks and crypto.

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