US Treasury to Double Repurchase Operations to Support Bond Market

On August 19, the US Treasury revealed its intention to increase the volume of its reverse repurchase agreements (reverse repos) on long-term Treasuries from 2 billion dollars to at least 4 billion dollars. This new program is scheduled to commence on September 9 and will run until November 4. The move has led to a decline in the yields of 30-year Treasuries to approximately 5.20% and 10-year Treasuries to about 4.65%. Market participants responded positively, with Bitcoin surpassing 65,000 dollars, reflecting market optimism. The increased buyback program aims to bolster liquidity in the debt markets and mitigate potential market risks.