US Treasury Expands Bond Buybacks, Boosts Market Sentiment Amid Crypto Rally
The US Treasury Department has announced an expansion of its government bond buyback program, aiming to ease pressure on the market. The maximum amount per operation will be doubled from $2 billion to at least $4 billion, with a focus on longer-term Treasuries in the 10-20 year and 20-30 year maturities.
The move comes as the bond market has been under significant stress due to rising long-term yields. However, the immediate market reaction was positive, with Treasury yields falling and stock futures rising.
The expansion of the bond buyback program is seen as a supportive measure for the US economy. Additionally, the crypto market also saw gains today, with Bitcoin and Ethereum surging amid President Trump's urging Congress to pass the Clarty Act. The Clarty Act has been gaining attention in recent weeks due to its potential impact on cryptocurrency regulation.
Gold prices remain below $4,500 but are close to their highest level since early June. However, gold faces conflicting forces, with hawkish Fed expectations and a stronger US dollar being bearish, while falling Treasury yields and geopolitical risks remain supportive.