The largest buyback in the history of US Treasuries—liquidity is flowing again.

According to a Treasury Department document on December 3, the US Treasury just bought back $12.5 billion of its own bonds.

Note, this is not QE, but the effect is quite similar.

When the Treasury buys back its own debt, it injects US dollars into the market.

Banks receive cash, interest rates are pushed down, and liquidity is reignited. Although this appears to be “debt structure optimization,” it is actually a disguised release of liquidity—somewhat like a “fiscal version of monetary easing.”

The market reaction is straightforward:

Gold surged, Bitcoin rebounded, and US Treasury yields declined.

This shows that capital is already looking for an outlet.

On the macro level, the Fed is still talking “tight,”

But the Treasury’s actions are already “loose.”