U.S. Treasury Restarting Debt Buyback! The Shadow of QE Reappears
Last night, the U.S. Treasury announced the latest operational results Operation Date: December 11 Planned Buyback: $12.5 billion Actual Buyback: $12.5 billion (full amount) Market Bids: $33.6 billion (2.7 times oversubscribed!)
This kind of “Debt Buyback” is essentially similar to printing money.
The Treasury used cash to buy back government bonds from the market—this will:
Inject liquidity into the market (equivalent to easing),
Relieve financing pressures caused by excessively high government bond yields,
Indirectly support risk assets, including stocks and cryptocurrencies.
In other words, although this operation isn’t called “QE,” it essentially amounts to fiscal “liquidity easing.”
And this signal, for the crypto world, is the starting point for capital to flow back in.
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U.S. Treasury Restarting Debt Buyback! The Shadow of QE Reappears
Last night, the U.S. Treasury announced the latest operational results
Operation Date: December 11
Planned Buyback: $12.5 billion
Actual Buyback: $12.5 billion (full amount)
Market Bids: $33.6 billion (2.7 times oversubscribed!)
This kind of “Debt Buyback” is essentially similar to printing money.
The Treasury used cash to buy back government bonds from the market—this will:
Inject liquidity into the market (equivalent to easing),
Relieve financing pressures caused by excessively high government bond yields,
Indirectly support risk assets, including stocks and cryptocurrencies.
In other words, although this operation isn’t called “QE,” it essentially amounts to fiscal “liquidity easing.”
And this signal, for the crypto world, is the starting point for capital to flow back in.