Treasury's Bond Fix Falls Flat as Gold Prices Soar

The US Treasury's recent announcement of increased liquidity support buyback operations for long-dated bonds was met with skepticism by the bond market, but gold prices continued to rise.

On Wednesday, the Treasury announced it would double the size of its buyback operations from $2 billion to at least $4 billion across the ten-to-twenty and twenty-to-thirty year sectors. The move was seen as a attempt to stabilize yields in the long end of the curve, but by Thursday, the entire move had been erased.

The bond market treated the intervention as a headline and repriced it away within a session, while gold continued to rise, closing the week at $4,600.91 an ounce, up $81.58 on the day and nearly five percent on the week.

Central banks bought 288.9 tonnes of gold in the second quarter of 2026, a quarterly record and about 62 percent more than the same period a year earlier, despite gold prices falling during that time.