The U.S. Treasury, under Secretary Scott Bessent, is set to at least double the size of its buybacks of longer-maturity government bonds.
Google Gets Warrant to Purchase $12.2B of Marvell Stock
Marvell, a semiconductor company focused on data-center, networking and storage technologies, has broadened its partnership with Google. The agreement gives Google warrants to acquire as much as $12.2 billion worth of Marvell shares.
The companies will work together on AI accelerators, memory, storage and networking chips. Marvell shares gained 13% following the announcement.
Treasury Expands Buybacks as Bond Yields Slide
The Treasury’s decision to increase its bond repurchases gave investors betting against long-term Treasurys a reminder that Bessent is effectively positioned on the other side of the trade.
The department said each long-duration bond buyback operation would be increased to at least $4 billion, doubling the previous size.
The announcement prompted a sharp move lower in Treasury yields. The 30-year yield dropped roughly eight basis points to 5.20%, while the 10-year yield declined by a similar amount.
The dollar also weakened, losing at least 0.5% against most major currencies.
Bitcoin briefly benefited from the shift, rising 1.2% over 24 hours to around $64,900. Nasdaq 100 futures also moved into positive territory, gaining about 0.55% after opening near unchanged.
Bond Market Veteran Calls Higher Yields a Return to Historical Norms
Amid concerns over the recent rise in long-term government borrowing costs, veteran bond investor Ed Bradford said the move may simply reflect a return to more typical market conditions.
Bradford pointed out that the spread between long-term Treasury yields and overnight rates has historically been wider than it is now. Although yields have moved sharply from the quantitative-easing and zero-rate era, he described current levels as closer to the market’s historical norm.
The gap between the 30-year Treasury yield and the federal funds rate is currently around 163 basis points. The 40-year average is about 178 basis points, while the spread has climbed close to 500 basis points three times.
Nebius Seeks $4.5B Through Convertible Notes
AI infrastructure provider Nebius plans to raise $4.5 billion through convertible senior notes maturing in 2030 and 2034. The company has also reserved the option to issue another $675 million.
The proceeds are expected to support data-center development, GPU purchases and wider business expansion.
Nebius shares fell about 7% in premarket trading.
Bitget: Oil Prices Are Blunting Bitcoin’s Response to Fed Shift
Bitcoin’s relatively limited reaction to softer Federal Reserve expectations may be explained by rising oil and geopolitical risks, according to Bitget Research chief analyst Ryan Lee.
While expectations for easier monetary policy would normally support risk assets, Brent crude remaining near $90 and continuing U.S.-Iran tensions are offsetting that benefit.
Lee said the key factor is how long oil remains elevated rather than whether it briefly crosses $90. A sustained rise could eventually push inflation expectations higher.
For now, the five-year breakeven inflation rate remains around 2.24%, suggesting markets have yet to price in a major inflation shock.
If crude prices ease while Treasury yields and the dollar continue falling, Bitcoin could gain further support from the friendlier monetary backdrop. But if oil stays high and inflation expectations rise, Bitcoin and ether could remain under pressure despite expectations for lower rates.
Crude Prices Rise as 30-Year Treasury Yield Pulls Back
WTI and Brent crude rose more than 0.5% Wednesday, reaching approximately $85 and $92 a barrel.
The U.S. 30-year Treasury yield, meanwhile, slipped from its multidecade peak of 5.338%.
European bond markets remained under pressure, with long-term yields continuing to climb in Germany and France.
12 of Strategy’s 15 Biggest Institutional Investors Added Shares
Strategy said 12 of its 15 largest institutional shareholders increased their holdings during the second quarter, raising their combined positions by about $1.2 billion.
Strategy stock fell more than 5% Tuesday even as Bitcoin moved higher. The shares have lost around 75% over the past year.
SK Hynix Unveils $29B Share Repurchase
SK Hynix announced a 40 trillion won ($29 billion) stock buyback and lifted its shareholder-return target to more than half of free cash flow, Bloomberg reported, citing a regulatory filing.
The memory-chip producer is seeking to bolster investor confidence as enthusiasm around AI hardware spending shows signs of cooling.
Shares of Nvidia’s supplier remained roughly 50% below their record high after sliding another 10% Wednesday. South Korea’s Kospi index also dropped 5.8%.
