Etienne Note: I think the organized crime “government” is trying to blow it all up as the information revolution begins to slowly and surely expose the illegitimacy and criminality of “government” and the theft of trillions. They will hold on to the gold, plant, property, equipment, and real estate stolen with the little paper tickets and digital dollars they created out of thin air while the population is bankrupted and challenged to mount a defense and/or organize a posse to go after them and claw back what was stolen through fractional reserve banking and confiscatory taxation.
Over the past several years, one of the more amusing debates gripping the market’s Fed-watchers was whether the Fed’s treasury buyback auctions were a form of soft QE, with this website consistently arguing that - contrary to what washed out ex-Bridgewater traders with a newsletter to sell may tell you - Treasury buybacks were just that when it comes to what matters such as market reaction, to wit:
zerohedge@zerohedge
*TREASURY SAYS IT'S EVALUATING ENHANCEMENTS TO BUYBACK PROGRAM "Not QE"
12:31 PM · Apr 30, 2025 · 551K Views
128 Replies · 357 Reposts · 3.63K Likes
zerohedge@zerohedge
*TREASURY INCREASES LIQUIDITY BUYBACK TOTAL TO $30B FROM $15B "Not QE 2.0" is growing
12:30 PM · Jul 31, 2024 · 300K Views
49 Replies · 296 Reposts · 1.95K Likes
zerohedge@zerohedge
TREASURY DEBT BUYBACK TARGETS COUPONS MATURING IN 2031 - 2034 Next QE rehearsal
6:48 PM · Jul 24, 2024 · 168K Views
6 Replies · 17 Reposts · 182 Likes
And moments ago, Scott Bessent finally resolved the debate when, with 30Y yields at 20 year highs and threatening to blow out higher, the US Treasury shocked markets, sparked a meltdown in yields and surge in equity futures and gold when it announced at 8:30am that they will be “increasing, by at least double, the size of liquidity support buyback operations for longer-dated nominal coupon securities (the 10-year to 20-year sector and the 20-year to 30-year sector). The current maximum size of $2 billion per operation will be at least $4 billion per operation.”
This change will be effective September 9, 2026 and will be in effect for the remainder of this refunding quarter (through November 4, 2026). The releases noted that the Treasury will provide more information about future buyback sizes at the next Quarterly Refunding, scheduled for November 4, 2026, in other words it has the benefit of 3 months of “NOT QE” without having to even specify its thinking.
According to the statement, “this increase in buyback operation sizes reflects Treasury’s desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants, as evidenced by the significant volume of high-quality offers Treasury routinely receives in longer-dated buyback operations.”
Translation: Bessent panicked and the justification that there is no liquidity is just a strawman, with the Treasury now freaking out that the demand for AI paper is crowding out demand for Treasuries as we have been warning for the past several weeks, and as we predicted a week ago when looking at the blowing out Treasury skew, “Bessent will be busy.:”
zerohedge@zerohedge
Bessent will be busy
zerohedge @zerohedge
TSY swaption vol of vol. Last time it was here repo market broke and Fed started NOT QE
11:39 PM · Aug 11, 2026 · 187K Views
18 Replies · 26 Reposts · 250 Likes
It took just one week for him to show just how busy he would be.
The market reaction was instant and violent, with 30y yields down 6bps in an instant on the headlines, having been down 2bp prior, This brings Wednesday’s yield decline to 8bp total
US 2s30s is 7bp flatter on the day and 10s30s 2bp flatter.
Naturally, with Bessent panicking, stock futures surged...
... but more importantly, gold is breaking out bigly....
... as the market realizes that with total US debt about to hit $40 trillion...
zerohedge@zerohedge
so close....
8:28 PM · Aug 18, 2026 · 182K Views
55 Replies · 78 Reposts · 649 Likes
... it all gets much worse from here.
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