The Treasury’s larger long-end buybacks should ease pressure on long-term yields. The Treasury will at least double buybacks across the 10-to-30-year sectors from $2 billion to at least $4 billion per operation beginning September 9. Funding for the buybacks comes through a broader borrowing program that leans on short-term bills. The net effect is a shift toward shorter maturities and less long-term debt for the market to absorb. This resembles one effect of QE even though the program is much smaller. This matters because investors are demanding an unusually high premium to hold 10-year Treasuries relative to what the macro backdrop would normally justify. Expanded buybacks add another force pushing that premium and the 10-year yield lower. Lower yields driven by a falling term premium have historically been constructive for risk assets. Suppressing the term premium while nominal growth remains near 6% shifts more inflation risk onto currency holders and could strengthen the case for gold and Bitcoin.(Delphi Digital)