Bitcoin and gold rally after Bessent expands Treasury buybacks

Treasury Secretary Scott Bessent expanded the Treasury bond buyback program. On Aug. 19, Bessent raised the maximum amount for each repurchase of 10-, 20-, and 30-year bonds to at least $4 billion. The previous limit was $2 billion. Longer-duration Treasury yields were near their highest levels since 2007. Bitcoin rose to nearly $80,000 after the announcement. The broader crypto market also rose. The move triggered billions of dollars in short-position liquidations. Gold rallied as well. Analysts said the announcement showed officials were concerned about rising long-duration borrowing costs. Analysts also said the announcement increased expectations for a more aggressive liquidity-easing operation.