The U.S. Treasury's bond buybacks aimed at easing 10- to 30-year yields have failed to hold, with both benchmarks rebounding quickly after an initial decline. Prediction markets, meanwhile, have pushed up the odds of gold hitting $4,700 in August.
Treasury Secretary Scott Bessent's push to calm the long-term bond market is struggling to deliver lasting relief, according to MarketWatch. The Treasury increased the size of its buybacks in 10- to 30-year Treasuries to boost liquidity, but yields on both maturities rebounded quickly after an initial decline. The 30-year yield now sits near 5.25%. The 10-year holds around 4.70%, leaving market participants questioning whether the intervention is working.
As a result, the setback is spilling into commodities. Some investors are turning to gold as a safe haven amid the potential for economic instability tied to the bond market's response. In prediction markets, the probability that gold reaches $4,700 in August 2026 has climbed to 57.9%. That is up sharply from 7% a week earlier.
Market participants are now watching for further Treasury announcements on buyback strategy, along with any signals from the Federal Reserve on rates. Broader inflation and employment data could also shift expectations for where gold prices head next.
Source: Crypto Briefing
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