The US bond market just reminded everyone who’s really in charge. Long-dated Treasury yields surged to levels not seen in nearly two decades, and Bitcoin responded exactly how you’d expect a risk-sensitive asset to respond: by whipsawing traders in both directions.
The 30-year Treasury yield peaked at roughly 5.33% around August 17-18, its highest reading since 2007. The 20-year yield wasn’t far behind, climbing to approximately 5.2% in late August. Bitcoin, caught in the crossfire, briefly punched above $81,000 before retracing as yields reasserted their upward pressure.
Bessent steps in with a buyback boost
Treasury Secretary Scott Bessent didn’t wait long to respond. On August 19, he announced a significant ramp-up in buybacks of long-dated Treasuries, doubling the minimum operation size from $2 billion to $4 billion starting September 9.
The problem: it didn’t immediately work. Long-term yields remained stubbornly elevated even after the announcement, suggesting the market’s concerns run deeper than a single policy tweak can address.
