Treasury buys $5.2 billion of bonds as Bitcoin ETF flows stay negative

The U.S. Treasury bought $5.187 billion of long-dated government bonds on Sept. 10, completing the first operation under its expanded program as Bitcoin investors watched for evidence of easier liquidity.

The immediate cross-market readout moved the other way. Treasury’s daily nominal yield curve showed the 10-year yield rising 12 basis points from 4.83% to 4.95%. Its real yield curve, which adjusts the return for expected inflation, showed the 10-year real yield climbing 9 basis points from 2.46% to 2.55%.

Higher real yields raise the return hurdle for a non-yielding asset such as Bitcoin. At the same time, U.S. spot Bitcoin ETFs posted another net outflow of roughly $282 million. The combination separates two mechanisms: Treasury improved a trading outlet for selected older bonds, while the broader cost of money and regulated-fund demand remained unfavorable.

The buyback targeted off-the-run liquidity

Treasury’s official result showed $10.489 billion of securities offered against a $6 billion maximum. It accepted 23 of 40 eligible issues maturing from February 2037 through August 2046.

The $6 billion figure was a ceiling. Treasury describes itself as a price-sensitive buyer in its buyback guidance, allowing it to accept less than the maximum when offers do not meet its criteria. The department retires accepted securities after settlement, managing the composition of its own debt rather than conducting a Federal Reserve monetary-policy purchase.