TREASURY TRIPLES THE BUYBACK TO $6 BILLION — THE MARKET WANTED TEN

$6 billion. That is what Treasury will spend Thursday buying back its own bonds, the ones maturing 2037 to 2046, up from $2 billion an operation before August. Traders wanted six to ten. They got six, and the 10-year yield was at 4.85% by the afternoon, the highest since 2023.

The debt crossed $40 trillion on August 18. Six billion is 0.015% of it. Treasury is not shrinking anything. It is swapping long paper the market does not want for short paper the market will take, and calling the swap support. Bessent’s word for it is a “Treasury twist.”

A buyer of last resort for the long end is now on a schedule: September 9 through November 4, at least $4 billion a time. When the seller of a bond has to become its buyer to hold the price, the price is saying something the seller does not want said. Druckenmiller said it for him: “Governments defending prices against fundamentals always lose.”

Bitcoin has no long end. Nobody has to buy it back to keep it bid. The 21 million cap is the one supply schedule in this market that does not get revised on a Wednesday.

At the time of this writing, bitcoin was $78,292 at 4:18 PM ET on Crypto.com.