The US Treasury completed a buyback of long-dated bonds on Tuesday, reaching its full cap of $6 billion. Dealers submitted offers totaling $10.7 billion across six different bond issues. The Treasury ultimately accepted $6 billion, paying between 52 and 71 cents on the dollar, which resulted in a total cash outlay of approximately $3.8 billion.
Unlike the market reaction in August, when a surprise announcement regarding the doubling of buyback operations triggered a 7% rise in Bitcoin, Tuesday's operation failed to spark a similar rally. Bitcoin dropped below $80,000, recording a 1.5% decline over 24 hours according to CoinGecko data. Analysts suggest the current operations are routine liquidity measures rather than catalysts for risk assets.
The Treasury's current buyback schedule remains in effect through November 4. Meanwhile, broader market indicators show that 10-year yields reached 5.342% on October 1, marking the highest level since April 2002. The Federal Reserve also maintained steady interest rates during its two-day meeting, which coincided with the Treasury's latest bond buyback operation.
