Bitcoin rebounded by about 3% from a low below $80,000 on Thursday as the yield on ten-year U.S. bonds fell by 13 basis points. The recovery began a few hours before the scheduled Treasury bond buyback, which the department calls liquidity support. By noon in New York, BTC was above $82,000, according to CoinGecko.
The yield on ten-year bonds fell to 5.06% on Thursday, down 0.13 percentage points. The Producer Price Index (PPI) in September rose by 1.3%, the highest since March 2022, CNBC reported. Investors were moving from tech stocks to bonds: U.S. chipmakers lost $1.64 trillion over six sessions. On Wednesday, the situation was different: yields reached 5.33% after the inflation report, and BTC was down about 2% by midday. Then on Thursday, a daily low of $79,806 was recorded a few hours after the yield began to decline. This coincided with a large spot order around $80,000.
Previous buyback episodes do not provide a clear picture. On August 19, the Treasury announced it would at least double the size of long bond buybacks, and yields fell; BTC gained about 7% that day. Operations usually run from 1:40 to 2:00 PM Eastern Time. Six hours after the operation on September 10, BTC was 1% lower, after September 24 – 0.4% higher, after October 8 – 1.3% higher, according to CoinGecko. On Thursday, the department accepted $6 billion when BTC had already recovered. Three episodes do not allow separating yield from the dollar, tech flows, or liquidity. The next checks are the buyback on October 27 and refinancing on November 4.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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