The U.S. Treasury said on Aug. 19 that it will double the amount of longer-term government bonds it buys back, from $2 billion to at least $4 billion per operation starting Sept. 9. The move
The U.S. Treasury said on Aug. 19 that it will double the amount of longer-term government bonds it buys back, from $2 billion to at least $4 billion per operation starting Sept. 9.
The move can help stabilize the bond market, push yields lower and ease some borrowing costs across the economy, including rates tied to mortgages and other loans.
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The key point is that this is not new stimulus or debt cancellation. It is a market-support measure designed to improve liquidity and reduce stress in longer-dated Treasurys.
Long-dated Treasurys are U.S. government bonds that mature 10-30 years from now. The Treasury said it is increasing buybacks to provide “greater liquidity support” in that part of the market, with the move coming a day after a sharp bond selloff pushed the 30-year yield to its highest level since 2007.
In the short term, that can loosen financial conditions and make risk assets, gold and Bitcoin more attractive.
Treasury said the larger buybacks will begin Sept. 9, with further guidance on future purchase sizes due at its next quarterly refunding on Nov. 4.
The announcement was followed by gains in scarce assets.
Bitcoin (BTC) climbed more than 5% over 24 hours to around $68,147, according to Decibel. Gold rose about 2.7% in 24 hours to $4,485 per ounce, and silver gained roughly 2.5% to $65.59 per ounce.
For Bitcoin, the move stands out as it remains well below its October 2025 record above $126,000 after a prolonged selloff that cut its value roughly in half before the latest rebound.
Bitcoin price at press time. Source: DecibelTreasury buybacks do not create money in the same way as Federal Reserve quantitative easing.
The Treasury repurchases older government debt, which can improve trading conditions and liquidity in less actively traded securities.
That distinction matters, but increased bond-market liquidity can still influence broader financial conditions. Investors often watch such changes alongside yields, the dollar and expectations for monetary policy when positioning in assets such as gold and Bitcoin.
Wednesday’s move reverses part of the pressure seen across scarce assets earlier this year. Gold rose more than $100 on the day, while Bitcoin pushed back above $68,000 despite remaining sharply below its 2025 peak.
Crypto markets, however, had another potential catalyst Wednesday. The White House is expected to host executives from Coinbase, Ripple, Chainlink, Andreessen Horowitz, Paradigm and other crypto and prediction-market firms, alongside President Donald Trump and CFTC Chair Mike Selig.
The meeting adds a policy backdrop to Bitcoin’s rally as Washington continues discussions with the crypto industry over regulation and market structure.
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