The Debasement Trade Has Entered Its Second Phase

BloFin Research 483 Followers Follow Summary The U.S. Treasury announced on August 19 that it would at least double the maximum size of its liquidity-support buybacks in the 10-to-20-year and 20-to-30-year bonds. The news reversed over six months of position unwinding of debasement trade; gold rose roughly 15% in August and Bitcoin roughly 25%. Financial repression broadly describes policies that keep government borrowing costs below the level the market might otherwise demand, especially when public debt is high. Getty Images The U.S. Treasury announced on August 19 that it would at least double the maximum size of its liquidity-support buybacks in the 10-to-20-year and 20-to-30-year bonds, lifting the cap from $2 billion to at least $4 billion per operation. This article was written by BloFin Research 483 Followers Follow BloFin Research focuses on crypto research and analysis, dedicated to providing institutional-grade insights into the digital asset market. Our work covers major crypto assets, market trends from a macroeconomic perspective, and industry-wide studies on key developments shaping the digital asset ecosystem.