It was barely a month back when the US Treasury dropped that bombshell about doubling their liquidity support buybacks on longer dated gov debt fr.
Same Move But Different Vibes 💀
On August 19 the Treasury’s Scott Bessent shocked everyone by saying they’d pump those buybacks from $2 billion straight up to $4 billion per op and boom the markets went wild with BTC and gold leading the charge while long term yields took a nosedive. By scooping up those old long term Treasuries the gov was lowkey fixing liquidity in a bond scene wrecked by sky high yields and that drop in yields made bonds less tempting which opened the door for risk assets like our fave crypto.
Why No Big Pump Tho? 🔥
The Treasury just hiked it again to $6 billion but this time the 10 year yield shot up to 4.85% a fresh high in almost three years while the 20 and 30 year ones climbed toward 5.30% and BTC didn’t celebrate like before instead dipping under $78,000 and struggling to bounce back.
The real twist was zero surprise this round unlike last month when it felt like a sudden policy flip that had everyone rethinking interventions amid climbing borrow costs. Now hitting $6 billion feels meh since Wall Street was eyeing up to $10 billion after those earlier hints.
On top of that the macro vibes are straight garbage with oil screaming past $100 amid the US Iran chaos and inflation panic at max levels while last week’s solid jobs numbers plus that hawkish Jackson Hole take have folks betting on a Fed rate hike come September 16.
Yields are racing ahead faster than these buybacks can drag them down and the bond market is basically fighting the Treasury rn with warnings that the 10 year could smash past 5% if this keeps up. That’s the core diff for BTC since it wasn’t the buyback move itself that launched it in August but what it did to yields and risk appetite overall.
The market signal feels way off this time even tho the play is similar lol. 🌸🖤💸🚀😈✨🕸️👀
Just another echo from the void by iconofsin.eth 💖
