The US Treasury is gearing up to boost its government debt buyback program, aiming to put a lid on rising Treasury yields. Market watchers expect the next buyback could top $4 billion, and Morgan Stanley even sees the program potentially scaling up to $10 billion.

What the US Treasury Is Up To

Treasury Secretary Scott Bessent previously explained that the move is meant to cool off the "fever" in the debt market after a spike in long-term Treasury yields. The Treasury is ready to ramp up buybacks, focusing on stabilizing the long-dated bond segment.

Market Expectations: $4B+ to $10B

Traders are looking for the next buyback to exceed $4 billion. If the program grows to $10 billion, the supply of bonds with maturities over 20 years could drop by about 55%, easing pressure on the long end of the yield curve.

Why Crypto Traders Care

If Treasury yields start to drop, risk assets get a boost—and that could mean more liquidity flowing into crypto. Looser conditions in the bond market often fire up appetite for higher-volatility plays like digital assets.