GLD jumps 3% as Treasury doubles long-dated buybacks
SPDR Gold Shares (GLD) surged 3% after the U.S. Treasury unexpectedly doubled long-dated bond buybacks to at least $4 billion per operation, pushing yields and the dollar lower.
S. Treasury unexpectedly doubled the size of its long-dated bond buybacks, sending yields and the dollar sharply lower. The move came a day after the 30-year Treasury yield hit its highest level since 2007, hammering rate-sensitive tech stocks as borrowing costs surged. Wednesday brought a sudden reversal.
Treasury said it would double liquidity-support buybacks for 10- to 30-year securities from $2 billion to at least $4 billion per operation. 8%, giving gold a double boost from lower yields and a weaker greenback. Metals trader Robert Gottlieb called the announcement “totally unexpected” and “very bullish for gold,” A Small Buyback Sends a Big Signal The extra $2 billion per operation is a rounding error in a roughly $31 trillion Treasury market. Traders appear to be pricing the signal instead: that Scott Bessent’s Treasury is willing to lean against disorderly moves in long-term yields.
Joseph Purtell, a rates trader at Neuberger Berman, questioned whether an extra $2 billion per buyback was really worth a nine-basis-point move. Instead, he said the market now sees a "soft line in the sand" for Treasury yields. The announcement came outside Treasury’s usual quarterly schedule, adding to speculation that officials were responding directly to the bond rout. The timing suggested they “didn’t like what was happening,” strategist John Briggs told the Wall Street Journal.
” Wednesday’s move was different, but the irony was hard to miss: Bessent had warned that Treasury debt management could move financial conditions. On Wednesday, his own Treasury underscored the point. Traders Aren’t Declaring Victory Prediction markets suggest the bond selloff may not be over. 75% or above, and a 34% chance it ends the year at 5% or higher.
Kalshi and have an existing data collaboration agreement. Schiff Says Buy Gold, Sell Bitcoin Gold bug Peter Schiff argued the Treasury is accepting higher inflation to slow the rise in long-term rates, a trade-off he says has lifted precious metals and Bitcoin alike. ” Schiff’s call faces an immediate test: Bitcoin (CRYPTO: BTC) was up more than 5% near $68,100 Wednesday, outperforming gold on the day. For now, gold bugs and Bitcoin bulls are trading the same Treasury signal.
2B Stake