Bessent’s $4 Billion Bond Buyback Fails to Lower Yields, Bitcoin Surges Instead

US Treasury Secretary Scott Bessent’s plan to calm bond markets by doubling long term bond buybacks to at least $4 billion per operation has failed to bring down yields. Instead, the announcement triggered a sharp rally in Bitcoin and gold, with Bitcoin climbing toward $80,000 and causing billions in short position liquidations across crypto markets.

Why Bond Yields Remain Stubbornly High

Despite the increased buyback size, the 30-year Treasury yield remains near 5.25%, close to its highest level since 2007. Analysts say the real pressure comes from the growing $40 trillion national debt and expected future borrowing, factors that are largely beyond the Treasury’s control and too strong for a buyback program of this size to offset.

Bitcoin and Gold Seen as Debt Hedge

Experts note that the rally reflects growing concern over currency debasement, as investors shift toward scarce assets like Bitcoin and gold to guard against rising debt and inflation risks. With yields still elevated, analysts are watching closely to see whether this trend continues or eventually slows momentum in hard assets.