US Treasury Acts to Stabilize Bond Market as Gold and Bitcoin Rise
The US Treasury stepped in to stabilize the bond market turmoil by announcing plans to at least double the size of its liquidity-support repurchase operations for long-term nominal-coupon Treasury securities. The cap per operation will increase from $2 billion to at least $4 billion, and this adjustment will apply to 10- to 20-year and 20- to 30-year Treasury bonds, taking effect on September 9, 2026, and remaining in place through November 4, 2026.
Despite the turmoil in the bond market, gold, silver, non-ferrous metals, and Bitcoin all rallied as the US dollar weakened. Meanwhile, with Russia's major ports damaged, the pace of grain exports has slowed significantly, leading to a broad rally in US agricultural futures on Wednesday.
US President Trump announced 'the toughest economic measures ever taken against any country' against Iran, calling for an immediate halt to activities such as oil smuggling, currency swaps, cash transfers, ship registration, and the use of shell companies. He urged US allies to join the United States in isolating Iran, reiterating that 'Iran will never possess nuclear weapons.'
Bitcoin surged 7% on Wednesday, returning to $69,000 for the first time since June, while Ethereum rose more than 17%, reclaiming the $2,200 level, following Trump's meeting with cryptocurrency industry executives at the White House.