Bitcoin news moved with bonds on Wednesday after the U.S. Treasury Department said it would increase buybacks of long-dated government debt. The move covered the 10-year to 30-year sector. Treasury yields fell after the announcement, easing a pressure point that had been building around the longest maturities.
The Treasury Department said the buybacks would be at least double in that part of the curve. The 10-year yield fell 5 basis points to 4.65%. The 30-year yield declined 8 basis points to 5.20% after touching its highest level since 2007 earlier this week.
Donald Trump eases tariff pressure
Donald Trump also paused the 50% Canadian tariffs for three days on Truth Social late Tuesday night. He wrote that the move was based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL. That left investors parsing two separate shifts at once: less trade pressure and more support for long-dated debt.
Stocks responded too. The Dow Jones Industrial Average gained 0.4% on Wednesday. The S&P 500 rose 0.5%. The tech-heavy Nasdaq Composite edged above the flat line.
Jonathan Krinsky on midterm seasonality
Jonathan Krinsky, a BTIG technical strategist, said the S&P 500 Equal-Weighted Index has peaked on August 18 before a rough stretch into mid-October in midterm election years since 1990. Yahoo Finance said that equal-weight gauge has averaged a 6% decline from Aug. 18 through Oct. 11 in those years. That gives traders a historical reminder that relief in yields can collide with a weak seasonal patch for stocks.
The immediate unanswered question is how much debt buyback volume The Treasury will actually execute and over what schedule. Investors in Treasury are left with the policy direction, but not the full operating plan.
