Gold, silver, and major cryptocurrencies surged after the U.S. Treasury announced it would at least double the size of its long-end bond buyback operations, easing pressure on long-term Treasury yields and triggering a broad rally across risk assets.
Within hours of the announcement, gold, silver, Bitcoin, and Ethereum collectively gained roughly $1.2 trillion in market value as investors responded to falling bond yields and improving financial conditions.
Treasury Expands Long-End Buybacks
The Treasury said it will increase liquidity-support buyback operations for 10-20 year and 20-30 year Treasury securities from a maximum of $2 billion to at least $4 billion per operation.
The larger buybacks will run from September 9 through November 4 and are intended to improve liquidity in the long end of the Treasury market following a sharp rise in yields.
Before the announcement, the 30-year Treasury yield had climbed above 5.3%, its highest level in nearly 19 years. Following the news, the yield fell to roughly 5.19%.
Precious Metals Lead the Rally
Lower long-term yields sparked a strong rally in precious metals.
Gold climbed approximately 3.1%, adding an estimated $934 billion in market value, while silver rose nearly 3.9%, increasing its market capitalization by roughly $136 billion.
Lower bond yields generally reduce the opportunity cost of holding non-yielding assets such as gold, making precious metals more attractive to investors.
Bitcoin and Ethereum Jump
Cryptocurrencies also rallied sharply.
Bitcoin gained more than 8%, adding roughly $103 billion in market value, while Ethereum advanced nearly 10%, increasing its valuation by approximately $22 billion.
The move reflects improving investor sentiment as declining Treasury yields increase the relative attractiveness of higher-risk assets.
Falling Yields Boost Risk Appetite
Market participants have increasingly viewed lower Treasury yields as supportive for equities, commodities, and digital assets.
When long-term borrowing costs decline, financing conditions generally improve, discount rates fall, and investors often rotate toward assets with higher expected returns.
The Treasury’s decision to expand buyback operations therefore had an immediate impact across multiple asset classes, highlighting how changes in government debt management can quickly influence global financial markets.
