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Treasury Raises Long‑Dated Buyback Cap as Bitcoin Rallies

The change is framed as a temporary liquidity step with a Sept. 9 start that could prompt markets to reassess longer‑dated yields, the dollar or inflation.

Overview

  • The U.S. Treasury on Aug. 19 said it will raise the maximum size of long‑dated bond buyback operations from $2 billion to at least $4 billion per auction, with the program set to begin Sept. 9 and run through Nov. 4.
  • Robert Kiyosaki renewed a public call on Aug. 22 for investors to buy Bitcoin, gold, silver and selected real estate and called the Treasury move “printing fake $,” a characterization that the Treasury did not make.
  • Bitcoin climbed more than 20% for the week and traded near $76,000 after approaching $79,500, a move that market reports link to forced short liquidations followed by about $1.92 billion in net inflows to U.S. spot‑Bitcoin ETFs over five sessions.
  • Treasury officials and analysts emphasize that buybacks are a debt‑management tool that replace outstanding securities and do not expand central bank reserves, so they are not the Federal Reserve’s quantitative easing.
  • Investors and policy watchers will test persistence starting Sept. 9 and after the Nov. 4 refunding update by watching longer‑term yields, dollar moves, Fed guidance and whether spot‑ETF demand can hold prices once short covering eases.