Why buying back discounted long bonds can raise the government’s refinancing cost and fail to lower mortgage rates.

Using the TGA would provide the Treasury with considerable firepower to influence long-term bond yields.

Washington’s larger bond buybacks may calm markets and improve liquidity, but they cannot alter America’s deficits or long-term debt trajectory. by V Thiagarajan, BasisPointInsight.com

Bitcoin broke above $71,000 for the first time since June after Trump urged Congress to pass the Clarity Act, triggering over $1 billion in short liquidations.

The U.S. Treasury's decision to double its buyback program for long-dated debt has sparked concerns about coordination with the Federal Reserve. Secretary Scott Bessent's announcement of $4 billion per operation purchases aims to stabilize yields, but market analysts question whether this will conflict with the Fed's inflation-fighting strategies. While the Treasury argues that current yields don't reflect economic fundamentals, critics note the potential for policy divergence between the two agencies. Federal Reserve Chairman Kevin Warsh has emphasized the importance of letting markets dictate interest rates, though the situation remains complex as both entities navigate their roles in managing financial stability. The move highlights ongoing tensions between fiscal and monetary policies, with experts suggesting the Fed may not intervene unless market dysfunction escalates significantly.

Bitcoin surged to $69,000 and ether jumped 10% after the Treasury doubled bond buybacks and the SEC proposed a new crypto offering framework, triggering nearly $2 billion in liquidations.