US Treasury purchases $5.2B of long‑dated bonds, Bitcoin ETFs see $283M outflow
Treasury buyback of $5.187 B long‑dated bonds
The U.S. Treasury accepted $5.187 billion of off‑the‑run government bonds on September 10, the first transaction under its expanded buyback program. The operation targeted 23 issues maturing between February 2037 and August 2046, out of a $6 billion ceiling.
Key market reactions
- 10‑year nominal yield rose to 4.95 % from 4.83 % (up 12 basis points).
- 10‑year real yield (inflation‑adjusted) climbed to 2.55 % from 2.46 % (up 9 basis points).
- Spot Bitcoin exchange‑traded funds (ETFs) recorded a net outflow of $282.7 million.
- Bitcoin closed near $76,568, close to a $76,000 support level.
Why the Treasury acted
The program is meant to improve liquidity for older, less‑traded Treasury issues, known as off‑the‑run bonds. By offering a predictable buyer, the Treasury hopes to narrow dealer spreads and make these bonds easier to trade.
Impact on Bitcoin and other assets
Higher real yields increase the return hurdle for assets that do not pay interest, such as Bitcoin. At the same time, the outflow from spot Bitcoin ETFs suggests weaker demand from regulated funds.
Other macro factors
Producer‑price data showed a 0.4 % monthly increase and a 5.4 % year‑over‑year rise in August. The European Central Bank also raised its key rates by 25 basis points on the same day. These factors keep overall market rates elevated and make it hard to isolate the Treasury’s effect.
Upcoming test for the market
U.S. consumer‑price data for August is scheduled for release on September 11. A cooling inflation report could push yields lower, while a hotter reading might keep them high.
Sources
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