Japan, China and the United Kingdom all reduced Treasury holdings in June. Then. . .
- 10 minutes ago
- 1 min read
Source: Hal Turner
Japan, China and the United Kingdom all reduced Treasury holdings in June. Then. . . U.S. Treasury Secretary Scott Bessent explicitly noted Japan could access the Fed’s FIMA repo facility, posting Treasuries as collateral rather than selling them, a detail that reveals exactly how sensitive Washington has become to the marginal Treasury bid.The market reaction to the buyback:
The 30-year fell roughly nine basis points
Gold rose more than 4% in its largest single day gain in six months
Bitcoin gained 6–8% with more than $1 billion of shorts liquidated in about an hour, and;
The dollar index fell 0.80% to a two and a half month low.
That is not the response of a market relieved about supply. It is the response of a market repricing institutional credibility.JPMorgan’s Sullivan said: "intervening in the bond market this way is like paying your mortgage with your credit card"America seems to be copying the Turkish economic model.
