US Treasury Sets $6 Billion Cap for Old Bond Buybacks, Eyes Hidden Signals for Bitcoin
MacroDigital Finance
The US Treasury has set a $6 billion cap for buying back older long-term bonds on September 10, which is three times the previous limit of $2 billion and higher than the minimum expansion the Treasury announced on August 19, when it promised to conduct at least $4 billion. The preliminary schedule, published on September 9, targets nominal Treasury securities with 10 to 20 years remaining maturity. The operation is scheduled to take place between 1:40 p.m. and 2:00 p.m. Eastern Time, with settlement on September 11 and maturity dates of eligible securities ranging from September 11, 2036, to September 10, 2046. Meanwhile, an International Monetary Fund working paper from May 2025 by Jing Zhou found results consistent with a slight improvement in government bond trading liquidity and a decline in dealer holdings. For Bitcoin, a stronger signal for the liquidity hypothesis would be a sustained improvement in bond trading and funding after the operation is completed.
