U.S. 30-Year Treasury Yield Stays Above 5%, Treasury Announces Buyback Expansion

The U.S. 30-year Treasury yield remains in the low 5% range, impacting traditional diversification strategies. On July 30, the yield for the 30-year bond was 5.21%, and it rose to 5.327% on August 18. The U.S. Treasury announced that from September 9 to November 4, it will increase the liquidity support buyback size for 10-20 year and 20-30 year Treasury bonds from $2 billion to at least $4 billion per session. The buyback involves repurchasing existing Treasury bonds in the market to enhance liquidity. However, it is uncertain whether the expansion of the buyback will serve as a structural solution to alleviate long-term interest rate anxiety. The Federal Reserve has stated that nominal Treasury yields have generally risen since the beginning of this year. As the defensive role of bonds weakens, investors are reducing their bond allocations and increasing their holdings in commodities and inflation-sensitive assets. Cryptocurrencies like Bitcoin are influenced by long-term interest rates and dollar liquidity, and market reactions during the Treasury's buyback limit expansion period are being closely watched.

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