BREAKING 🚨: United States Treasury - THEY DID IT AGAIN! Japan 2.0 ???
U.S. Treasury just bought back another $10 Billion of its own debt, matching the largest Treasury buyback in history (and that was from last week)! Source: Barchart
French-Italian 10y spread dropped below 25 bp this morning.
It was 115 bp at the start of last year… En route to zero? Source: Stephane Deo on X, Eleva Capital, Bloomberg
Apollo’s take on the treasury market and its implications:
👉 Over the past 12 months, roughly half of all fixed income product coming to the market has been Treasuries, see chart below. 👉 This is not healthy. Half of credit issued in the economy should not be going to the government. ➡️ The consequence is that investors need to allocate more and more dollars to finance the government rather than financing growth in the economy through loans to firms and consumers. Source: Peter Mallouk
Japan's 30-year government bond yield has risen sharply in recent months and is now 3%.
That's the same yield level as Germany, but German government debt is 60% versus Japan's 240%. Japanese yields are still way too low given Japan's astronomically high level of government debt. Source: Robin Brooks @robin_j_brooks on X
$TLT just saw a weekly inflow of $1.8 Billion, the highest inflow among all ETFs 🚨
Source: Bloomberg, Barchart
If it is the case, that means the printer is coming
Source: Bloomberg
Gold and JGBs 30y yield...
Wonder why gold was down yesterday? Japanese bond yields tumbled, as according to Reuters, Japan's Ministry of Finance (MOF) will consider tweaking the composition of its bond program for the current fiscal year, which could involve cuts to its super-long bond issuance... This was enough to fuel some profit taking on the yellow metal Source. The Market Ear
When you think bonds are safe...
This is not a sh*tcoin... This is Apple bond maturity 2060. Drawdown from peak to through is Source chart: Lawrence McDonald, Bloomberg
