Treasury buybacks are ramping up, and bitcoin has broken out to the upside. Join @1MarkMoss, @jameslavish, @ColeMacro, and @vandrewattycpa for a live chat on what will drive bitcoin's price recovery. Register for free ⤵️

US Treasury Secretary Scott Bessent told lawmakers at a House Financial Services Committee hearing that the recent Treasury buybacks were a success and underscored US credibility, despite the recent climb in the yield on the 10-year to above 5%

BESSENT ON TREASURY BUYBACKS & THE BOND MARKET: “Reject the idea that investors are scared about US credit.” “Off-the-run securities are less liquid.” “We make a market buying older bonds.” A “fever” was building in the bond market before the buyback news. “I can’t change the equilibrium price” of bonds.

The US Treasury Has Now: 1. Announced that Treasury buybacks would double from $2 billion to $4 billion 2. Announced that Treasury buybacks could "more than double" 3. Considered using its $950 billion General Account for these purchases Meanwhile, the 10Y Note Yield is still ABOVE levels seen prior to their initial announcement on August 19th. This is going to be a long battle.

30-YEAR TREASURY YIELD BECOMES MARKET’S NEW FEAR GAUGE The US 30-year Treasury yield has become a key market focus as concerns over government debt and fiscal credibility intensify. A Bloomberg survey shows 66% expect the 10-year yield to exceed 5% this year. But KB Securities says investors are too pessimistic. It argues policymakers still have tools to contain yields, including Treasury buybacks, fiscal tightening, Operation Twist and bank deregulation.

The impacts of Treasury buybacks are often overstated/sensationalized, but the signal here is that Bessent = Yellen. *Everyone* who comes into power blinks once they encounter the fiscal train. Doesn't matter what they said before.

Gold SWOT: Jeff Currie sees Treasury buybacks as bullish for gold The best-performing precious metal for the week was platinum, though it was still off 1.30% and roughly in line with gold’s price this week. Continued gold ETF inflows signal resilient investor demand. Investors remain willing to add gold exposure during periods of price weakness, with continued ETF inflows reflecting persistent concerns over currency intervention, fiscal sustainability and the long-term purchasing power of fiat currencies, according to BMO. #gold# #silver# @bulldogholmes