Crypto HeadlinesUS Treasury buys back bonds to support markets
The U.S. Department of the Treasury continues its program to buy back long-term government bonds. In October, it plans to purchase Treasury securities with maturities ranging from 10 to 20 years worth up to $6 billion.
The program was expanded to strengthen market support. Previously, limits had already been adjusted upward.
Against this backdrop, the yield on 30-year government bonds reached its highest level since 2002, standing at 5.62%. This indicates significant volatility in the debt instrument market.
Additional demand from the Treasury supports Treasuries prices and puts downward pressure on their yields. Lower risk-free asset yields ease financial conditions for the economy.
This process reduces competition for capital between government bonds and risky assets. The result is a positive impact on the stock market, Bitcoin cryptocurrency, and other high-risk assets.
- Support for Treasury security prices
- Reduced financial burden through falling yields
- Increased market liquidity by removing less liquid issues
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