The U.S. Treasury announced on the 19th that it will increase the liquidity support buyback for 10-20 year and 20-30 year nominal coupon bonds from a maximum of $2 billion per session to at least $4 billion. The revised buyback schedule will be effective from September 9 to November 4. Jeff Currie, co-chair of Abaxx Markets, claimed that a commodities bull market has begun, stating that physical supply pressures and long-term interest rate stabilization measures will support commodity prices. Currie mentioned that commodities are the only asset class that wins on both sides, explaining that physical supply shortages and policy interventions push prices higher. Long-term Treasury yields fell immediately after the Treasury's announcement, with the 30-year yield dropping from 5.327% to 5.187% during the day. The S&P Dow Jones Indices' Dow Jones Commodity Index rose by 23.20% year-to-date as of August 12. Currie also referenced the price trends of gold, silver, and agricultural products, asserting that the commodities bull market is not limited to specific items. However, the Treasury describes this buyback expansion as a liquidity support measure for long-term bonds, making it difficult to interpret it as a definitive signal of a long-term commodities bull market.
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Expanded U.S. Treasury long-bond buybacks helped pull yields lower and supported a modest rebound in risk appetite, with the major indexes closing slightly higher. At the same time, Bitcoin briefly rose above $70,000 and lifted crypto-linked equities, while positive Phase 3 vaccine data from Merck and Moderna pushed healthcare and biotech stocks higher. SK Hynix’s large-scale buyback also kept attention on the storage cycle and AI-related demand. Markets are continuing to digest the relatively hawkish Fed minutes while positioning ahead of earnings from Alibaba and Walmart.



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