Led by Treasury Secretary Scott Bessent, the U.S. Treasury has announced plans to at least double the size of its purchases of longer-dated government bonds.
Google Secures Right to Buy $12.2B in Marvell Shares
Marvell Technology, which develops semiconductors for data centers, networking and storage, has expanded its chip-development partnership with Google. Under the agreement, Google received warrants allowing it to purchase up to $12.2 billion worth of Marvell shares.
The companies will jointly work on AI accelerators as well as storage, networking and memory chips. Marvell stock jumped 13% following the announcement.
Treasury Buyback Boost Sends Yields Lower, Bitcoin Higher
The latest Treasury move offered traders shorting long-term government bonds a reminder that Bessent is effectively positioned on the opposite side of that trade.
The Treasury said it would increase its long-dated bond buyback program to at least $4 billion per operation, representing at least a twofold increase.
The announcement triggered an immediate decline in Treasury yields. The 30-year yield fell about eight basis points to 5.20%, while the 10-year yield posted a similar move lower.
The U.S. dollar also weakened sharply, falling 0.5% or more against most major currencies.
Bitcoin received a modest boost, rising to around $64,900 and gaining 1.2% over the previous 24 hours. Nasdaq 100 futures also turned higher, climbing about 0.55% after initially trading near flat.
Bond Veteran Says Higher Yields Signal a Return to Normal
As investors remain concerned about the recent increase in long-term government bond yields, bond-market veteran Ed Bradford argued that the move represents more of a return to historical norms than an abnormal development.
Bradford noted that the spread between long-term Treasury yields and overnight rates has historically averaged above current levels. While the current environment marks a major shift from the era of quantitative easing, zero interest rates and negative real yields, he said the present conditions are closer to the market’s previous norm.
His analysis showed that the spread between the 30-year Treasury yield and the federal funds rate currently stands at about 163 basis points. Over the past four decades, the average has been roughly 178 basis points, while the spread has approached 500 basis points on three occasions.
Nebius Plans $4.5B Convertible Note Sale
AI infrastructure company Nebius plans to raise $4.5 billion through convertible senior notes maturing in 2030 and 2034. The company could also increase the offering by another $675 million.
Nebius intends to use the proceeds to expand data-center capacity, purchase GPUs and finance its broader growth strategy.
Nebius shares fell 7% in premarket trading Wednesday.
Bitget: Oil Risks Are Limiting Bitcoin’s Response to Softer Fed Expectations
Bitcoin has shown a surprisingly muted reaction to increasingly dovish expectations for the Federal Reserve, according to Bitget Research chief analyst Ryan Lee.
Lee said geopolitical tensions and elevated oil prices are offsetting the potential benefit of easier monetary policy. Under normal circumstances, expectations for lower rates would support risk assets, but Brent crude hovering around $90 and the unresolved U.S.-Iran conflict are limiting that effect.
The key issue is whether oil prices remain elevated rather than simply moving above $90 temporarily. A prolonged period of high crude prices could push inflation expectations higher, Lee said.
So far, that pressure has remained limited, with the five-year breakeven inflation rate holding near 2.24%.
If oil prices decline while Treasury yields and the dollar continue to weaken, Bitcoin could gain from the more supportive Fed outlook. Conversely, persistently high oil prices and rising inflation expectations could keep Bitcoin and ether under pressure despite easier monetary-policy expectations.
Oil Prices Rise as 30-Year Treasury Yield Eases
WTI and Brent crude prices advanced more than 0.5% Wednesday, reaching about $85 and $92 per barrel, respectively.
Meanwhile, the U.S. 30-year Treasury yield edged down from its multidecade peak of 5.338%.
Long-term borrowing costs continued climbing in Germany and France, however, with little relief for European bond markets.
Most of Strategy’s Largest Institutional Holders Added Shares
Twelve of Strategy’s 15 largest institutional shareholders increased their positions during the second quarter, according to the company. Their combined holdings rose by approximately $1.2 billion.
Strategy shares dropped more than 5% Tuesday despite a rise in Bitcoin. The stock has fallen about 75% over the past year.
SK Hynix Announces $29B Buyback
SK Hynix announced a 40 trillion won ($29 billion) share repurchase program and increased its shareholder-return target to more than 50% of free cash flow, according to Bloomberg, citing a regulatory filing.
The memory-chip manufacturer is attempting to reassure investors as concerns grow over the sustainability of AI-related hardware spending.
Shares of the Nvidia supplier remain about 50% below their record high after falling another 10% Wednesday. South Korea’s Kospi benchmark also dropped 5.8%.
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