{"id":77062,"date":"2026-08-20T17:21:33","date_gmt":"2026-08-20T17:21:33","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/treasury-boss-targets-bond-yields\/"},"modified":"2026-08-20T17:21:33","modified_gmt":"2026-08-20T17:21:33","slug":"treasury-boss-targets-bond-yields","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/treasury-boss-targets-bond-yields\/","title":{"rendered":"Treasury Boss Targets Bond Yields"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Bessent said Treasury buybacks could exceed $4 billion per operation.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Bitcoin stands above $72,000 per unit Aug. 20 as long-term Treasury yields retreated.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Treasury\u2019s expanded buybacks begin Sept. 9, with markets watching yields next.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Bessent Cranks Up the Pressure on Long-Term Yields<\/h2>\n<p>The comments followed the <a href=\"https:\/\/news.bitcoin.com\/crypto-news\/treasury-doubles-long-end-buybacks-as-bitcoin-and-us-stocks-advance\/\">Treasury Department\u2019s decision Wednesday<\/a> to at least double the maximum size of liquidity-support buybacks for longer-dated government securities. The new floor jumps from $2 billion to $4 billion per operation beginning Sept. 9 and stays in place through Nov. 4.<\/p>\n<p>\u201cWe\u2019re going to increase the size of the buyback,\u201d <a href=\"https:\/\/www.cnbc.com\/2026\/08\/20\/bessent-says-treasury-buyback-operation-could-be-more-than-4-billion.html\" target=\"_blank\" rel=\"noopener noreferrer\">Bessent told CNBC during his interview<\/a>. \u201cI would note that it could be more than the 4 billion per issue.\u201d<\/p>\n<p>Bessent stressed that Treasury has a \u201cbig toolkit\u201d and framed the move partly as a warning to markets that current yields do not reflect underlying economic fundamentals. The firepower targets Treasury securities with maturities ranging from 10 to 30 years.<\/p>\n<h2>Treasury Starts Scooping Up Older Bonds<\/h2>\n<p>Treasury buybacks are not debt cancellation. Washington purchases older, less actively traded securities, known as off-the-run Treasurys, while simultaneously selling fresh debt to finance deficits and refinance maturing obligations. The mechanics can inject liquidity and prop up prices in corners of the bond market where trading has grown strained.<\/p>\n<figure id=\"attachment_840856\" aria-describedby=\"caption-attachment-840856\" style=\"width:1350px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-840856\" class=\"wp-caption-text\">Image source: X<\/figcaption><\/figure>\n<p>The math matters because bond prices and yields move in opposite directions. When Treasury buys push bond prices higher, yields can retreat. Those yields ripple through borrowing costs across the economy, including mortgage rates, corporate financing and other long-term loans.<\/p>\n<p>The timing is impossible to miss. The <a href=\"https:\/\/news.bitcoin.com\/finance\/the-great-long-bond-selloff-forces-a-brutal-fiscal-reckoning\/\">30-year Treasury yield climbed to roughly 5.33%<\/a> to 5.34% earlier this week, its highest level since 2007, while total U.S. public debt cracked $40 trillion. Investors are increasingly confronting relentless government borrowing, persistent deficits, and mounting federal interest expenses.<\/p>\n<h2>Bond Yields Buckle as Bitcoin Catches Fire<\/h2>\n<p>Markets wasted little time. The 30-year yield dropped roughly 8 to 10 basis points following Wednesday\u2019s announcement, while the 10-year yield also fell. A basis point equals one-hundredth of a percentage point. Part of that move was later reversed as traders measured the relatively small program against the enormous Treasury market.<\/p>\n<p><a href=\"https:\/\/news.bitcoin.com\/market-updates\/btc-nears-72k-as-altcoins-surge-and-short-sellers-lose-3b\/\">Bitcoin ripped the other way<\/a>. After trading in the mid-$64,000 range before the announcement, the cryptocurrency raced toward $69,000 to $70,000 Wednesday before extending the move on Thursday. As of about 11:40 a.m. EDT Aug. 20, bitcoin traded above $72,000.<\/p>\n<p> <iframe src=\"https:\/\/markets.bitcoin.com\/crypto\/bitcoin\/embed\" width=\"100%\" style=\"max-height:500px;height:500px;border:none;overflow:hidden;border-radius:4px\" scrolling=\"no\" title=\"bitcoin market data\"><\/iframe> <\/p>\n<p>Falling Treasury yields make assets without interest payments, including bitcoin and gold, relatively more attractive. A weaker dollar and renewed appetite for risk poured fuel on the trade, while heavy cryptocurrency short liquidations accelerated the move as bearish traders were forced to close positions.<\/p>\n<h2>Bigger Buybacks Cannot Bury $40 Trillion<\/h2>\n<p>Still, the numbers expose the program\u2019s limits. The Treasury market contains roughly $32 trillion in outstanding securities, meaning even purchases above $4 billion amount to pocket change against the broader market. Buybacks also <a href=\"https:\/\/news.bitcoin.com\/finance\/trump-opens-bitcoin-door-as-us-debt-blows-past-40-trillion\/\">cannot shrink the national debt<\/a> because the Treasury keeps issuing securities to finance federal spending.<\/p>\n<p>That leaves investors testing whether Bessent\u2019s intervention can deliver anything beyond a temporary break in long-term yields. Treasury has indicated that more details on future buyback sizes will arrive with its next Quarterly Refunding announcement.<\/p>\n<p>The first expanded operations are expected in September, including purchases targeting 10- to 20-year and 20- to 30-year securities. Markets will watch how hard Treasury presses its new flexibility, whether long-term yields start climbing again and whether bitcoin can defend the gains ignited by Washington\u2019s bond-market intervention.<\/p>\n<p> <!-- --><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/finance\/were-going-to-increase-the-buyback-treasury-boss-targets-bond-yields\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Bessent said Treasury buybacks could exceed $4 billion per operation. Bitcoin stands above $72,000 per unit Aug. 20 as long-term Treasury yields retreated. Treasury\u2019s expanded buybacks begin Sept. 9, with markets watching yields next. Bessent Cranks Up the Pressure on Long-Term Yields The comments followed the [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":77063,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77062"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=77062"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77062\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/77063"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=77062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=77062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=77062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}