US Treasury’s $4 billion bond buyback plan sparks dollar weakness and asset gains, lifting gold 3% and Bitcoin toward $70,000.
Gold and Bitcoin surged after the US Treasury announced expanded buybacks of longer-dated bonds, doubling some operations to at least $4 billion. The move targeted bonds with 10-year or longer maturities, reducing yields and weakening the dollar.
The Treasury’s repurchases, though modest compared to the broader market, added liquidity and demand, contrasting with Federal Reserve quantitative easing. Prior buyback plans had limited impact, but this expansion coincided with a 3% jump in gold and Bitcoin’s rise from above $65,000 toward $69,000-$70,000.
Traders interpreted the reaction as a sign of growing concerns over the dollar’s long-term purchasing power. While gold and Bitcoin both benefit from scarcity narratives, their roles differ—gold as a reserve asset and Bitcoin as a volatile risk asset.