Crypto▼ Bearish
Treasury Buybacks Calm Bond Market as US Debt Crosses $40 Trillion
The Treasury expanded long-dated buyback operations after yields surged, calming bond markets. Bitcoin climbed above $72,000 as falling yields improved risk appetite. The next fiscal test is the $41.1 trillion debt ceiling, binding by mid-2027.
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The U.S. national debt crossed $40 trillion for the first time, a milestone that arrived five months after the $39 trillion mark and roughly 10 months after $38 trillion. The U.S. Treasury reported total public debt outstanding above $40 trillion, driven by persistent federal deficits, higher defense and social spending, and a growing interest bill as older debt is refinanced at higher rates.
The debt figure itself did not move markets. What did was the Treasury's decision this week to expand several long-dated debt buyback operations, a move that calmed the bond market after yields had surged. Long-term borrowing costs remain elevated, but the buyback announcement gave traders a reason to step back from the selloff.
Higher yields typically weigh on stocks by raising financing costs and making bonds more competitive against equities. That dynamic has pressured the stock market in recent weeks, especially expensive technology shares. Bitcoin moved in the opposite direction. It climbed above $72,000 after falling long-term yields improved risk appetite across markets.