U.S. Treasury announced on Wednesday that it will increase its purchases of long‑term Treasury bonds to at least $4 billion per operation through early November, using proceeds from short‑term debt rather than creating new money. The move, which doubles the previous buyback cap, sent Bitcoin above $77,000 and marked a 23% weekly gain, the largest since March 2023, according to CoinDesk data.

The Treasury said the operation, scheduled from September 9 to November 4, will involve buying older 10‑ to 30‑year bonds that trade less frequently. Treasury Secretary Scott Bessent said the action could exceed $4 billion per issue. The program mirrors the Federal Reserve’s “Operation Twist,” which bought longer‑duration securities while selling short‑term notes to influence the yield curve without injecting new reserves.

Officials and analysts described the measure as a liquidity‑management tool intended to ease bond‑market stress, not as quantitative easing or yield‑curve control. The Treasury emphasized that it is using existing funds or proceeds from short‑term issuance, not printing money. Analysts at ING noted that the buybacks are a zero‑sum game unlikely to alter the upward trend of long‑dated yields, which rose to a two‑decade high before pulling back slightly.

The announcement comes as long‑term borrowing costs have climbed to their highest level in almost 20 years, raising concerns for government finances and for assets such as Bitcoin and gold. Bitcoin rose past $77,000, up 23% for the week, while gold and the U.S. dollar also moved higher and lower respectively. Some market participants said the signal of potential broader policy support contributed to the rally, even though the scale of the buyback is modest relative to total bond issuance.

Analysts warned that the move may indicate a reluctance to confront the growing deficit directly and could foreshadow more aggressive interventions, including a full‑blown yield‑curve control by the Federal Reserve. Such a step would expand the Fed’s balance sheet and inject large amounts of liquidity into markets.