BESSENT RAISES THE BET AGAIN: "WE JUST INCREASED THE SIZE OF THE BUYBACK WHILE WE'RE IN AN ILLIQUID PERIOD"

👀 Translated: the Treasury will keep buying more bonds right when there are few buyers in the market

🎯 Does it have the means? Yes. The Treasury account at the Fed has close to $950 billion, nearly double what was held during the Biden era.

▪️ Treasury officials have already confirmed that this pool of funds is available to finance buybacks.

▪️ The calendar remains loaded: REINVESTMENTS of $4 billion in 7- to 10-year bonds on September 24, and operations of $4 billion or more on October 6.

▪️ On November 4, the Treasury sets the size of buybacks for the next quarter. That’s when it will be known whether this becomes permanent.

👀 The key backdrop for #crypto: August 19, the day the Treasury announced it would double buybacks, #Bitcoin surpassed $70,000 for the first time in two months

📍 Bessent doesn’t seem to be planning to back off. If buybacks keep growing through November and manage to lower bond yields, that money will go back looking for risk...