Treasury buybacks are accelerating: The US Treasury has bought back a record 138 billion in bonds YTD. This significantly surpasses the 79 billion repurchased during the entire 2024. This buyback program aims to boost liquidity and manage cash, as deficit spending continues to surge. In July, the Treasury said it would buy back 10- to 30-year Treasuries TWICE as often. As a result, Bloomberg’s measure of Treasury liquidity has materially improved over the last year. The world’s largest bond market can no longer function without intervention.(The Kobeissi Letter)