Fundstrat co-founder and analyst Tom Lee said the U.S. Treasury Department’s expected expansion of its long-term bond repurchase program—potentially backed by nearly $1 trillion in Treasury General Account balances—could act as a marginal liquidity improvement for financial markets. Speaking after the Treasury doubled planned long-dated buybacks from $2 billion to at least $4 billion per operation on Aug. 19, Lee argued the move could push long-term interest rates lower.
That, he said, would support long-duration assets sensitive to the present value of future cash flows, including stocks, Bitcoin and other cryptocurrencies, gold and real estate. His comments came as Bitcoin traders watch 10-year and 30-year Treasury yields for the next directional signal, following the 30-year yield’s climb to a 19-year high. Gold topped $4,650 as softer yields and a weaker dollar revived concerns about U.S. fiscal credibility.
Under the expanded schedule, long-dated buybacks run from Sept. 9 through Nov. 4. A senior U.S. Treasury official previously said roughly $1 trillion in the Treasury General Account could support the enlarged repurchase program. Lee framed the buyback as an improvement in market liquidity conditions, though analysts cautioned that lower yields may also reflect deeper worries over U.S. fiscal sustainability.
