The U.S. Treasury repurchased a record amount as the market awaits Powell's speech.

[Coin World] Welcome to the Morning Briefing of US Crypto Assets News - your essential summary to understand the most important developments in the crypto assets space of the day. As the market debates whether the new liquidity signals are easing or creating deeper pressures, grab a cup of coffee. Today's crypto assets news: As the market awaits Powell, the US Treasury's record buyback highlights liquidity pressure.

The U.S. Treasury has conducted one of the largest debt buybacks in history, repurchasing $4 billion worth of government bonds. Analysts say this move injects new liquidity into the financial system. Analyst Kyle Doops emphasized the scale of the Treasury's action, pointing out that the $4 billion buyback is one of the largest repurchases in history. Traders also expressed the same view, considering this operation a rare initiative that highlights the government's willingness to increase liquidity during sensitive market periods.

However, the scale of the sell offers reveals a more unsettling dynamic. According to analysts, investors are queuing up to sell $29 billion of debt to the Treasury. Notably, this far exceeds the amount the government is willing to repurchase. The analyst added that this demand imbalance indicates systemic financing pressure. He believes that the Federal Reserve will ultimately be forced to take more aggressive measures to inject funds into the market.

Although the Treasury's buyback may have bought some time, it has also exposed cracks in the liquidity of the bond market. Investors are weighing whether this injection marks the beginning of a broader easing policy or is merely a temporary remedy before deeper market pressures force the Federal Reserve to take action.

The repurchase announced on Wednesday comes as the market prepares for Federal Reserve Chairman Jerome Powell's speech on Friday at the Jackson Hole Economic Symposium. Investors hope that Powell will clarify the interest rate path during the meeting.

Before Powell delivered his speech at Jackson Hole, yields rose slightly. Despite the injections, U.S. Treasury yields rose slightly on Thursday morning. The benchmark 10-year Treasury yield increased to 4.308%, while the 2-year Treasury yield rose to 3.76%. Yields and prices move inversely, meaning higher yields reflect lower demand for bonds. This mismatch suggests that repurchase agreements may not be able to absorb the market supply.

All eyes are now on Jackson Hole, where Powell is expected to indicate whether the Federal Reserve is still committed to maintaining high interest rates or is ready to cut rates later this year. According to CME's FedWatch tool, traders expect nearly an 80% chance of a rate cut at the September meeting. However, the latest FOMC meeting minutes show a divide among Federal Reserve officials. While the committee chose to keep rates unchanged, Governors Christopher Waller and Michelle Bowman held differing opinions. This is the first dual dissent since 1993. Their positions reflect concerns about the possibility of inflation accelerating again, especially if Trump's tariffs and supply chain costs are passed on to consumers.

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