On September 9, the US Department of the Treasury announced plans to triple the maximum volume of liquidity support operations for longer-term debt obligations to $6 billion. This decision did not trigger the expected spike in Bitcoin prices, which has remained stable over the past month and, in some cases, even showed a decline. The last time such an announcement was made on August 19, Bitcoin's price reacted significantly better, soaring from $65,000 to $80,000.
The increase in operations to $6 billion is once again aimed at purchasing old debt obligations, which was supposed to improve liquidity in the bond market amid rising rates. However, as practice shows, a decrease in bond yields makes them less attractive and creates more favorable conditions for riskier assets such as Bitcoin. This time, however, the market's reaction was different: the yield on 10-year bonds reached 4.85%, the highest level in nearly three years, while the yields on 20- and 30-year bonds increased to 5.30%.
Experts attribute the failure of the announcement to factors such as the lack of surprise in the latest decision and the deteriorating macroeconomic environment. Oil prices are rising, inflation expectations remain high, and recent positive employment data also raises fears of a possible interest rate hike by the Federal Reserve. As noted by Kobeissi Letter, the bond market is "struggling" with the Treasury's actions, which could lead to the yield on 10-year bonds exceeding 5% if current conditions persist. This confirms that Bitcoin's investment characteristics depend not only on liquidity support programs but also on the overall market situation and expectations regarding bond yields.