The US is buying back long-term bonds at twice the rate to lower long-term interest rates. However, short-term bonds are increasing, creating a situation where "one stone is removed from under another stone, only to prop up the latter".

The United States government recently took steps to address the record-high national debt and rising interest rates on long-term bonds. The Treasury Department announced a significant increase in the amounts of long-term bond buybacks, or "shortening," to 40 billion dollars per issuance cycle, effective from September 9th to November 4th.

This move aims to improve market liquidity, but analysts warn that it may create a superficial solution, as short-term bonds could be issued to cover the buybacks. The increase in interest rates is primarily due to the robust demand for artificial intelligence infrastructure and defense-related spending, which has led to a surge in government borrowing.

While the Treasury's actions may provide short-term relief, they may also raise doubts about the country's creditworthiness and potentially shift investor interest towards alternative assets like Bitcoin.