Larger Buybacks Fail to Satisfy as Bond Market Demands More Firepower

The government expanded its long-end liquidity support operations to $6B per round — a 50% increase over August’s floor — but risk assets sold off anyway. Bitcoin briefly rallied on the announcement before reversing lower, and the 10-year yield pushed above 4.85% to a new year-to-date high. The market’s message is clear: the direction of duration management policy is welcome, but the current scale is not yet sufficient to arrest the move in long rates.