Treasury Steps In to Stabilize Bond Yields, Bitcoin Surges

The U.S. Treasury stepped in to stabilize long-term bond yields, which had spiked due to concerns over the national debt and AI-related corporate issuance. Treasury Secretary Scott Bessent announced that it would 'at least double' its buybacks of 10- to 30-year debt, a move that temporarily eased pressure on the market.

However, this relief was short-lived as yields rebounded near pre-announcement levels by Friday. Analysts described the intervention as a 'band-aid' without underlying fiscal consolidation, and warned about the risk of a 'slippery slope' if Bessent starts defending specific yield levels.

Meanwhile, Bitcoin surged 23% for its best week since 2023, benefiting from the bond market's volatility. The cryptocurrency also received a regulatory tailwind with President Donald Trump pushing Congress to pass the Clarity Act, and a record short squeeze that mechanically accelerated the move.