Bonds 06 (Oct 23 - Dec 26)

[behappyalways]

*JAPAN 30-YEAR BOND SALE DRAWS WEAKEST DEMAND RATIO SINCE 2023
https://x.com/zerohedge/status/1930468731873873958

[winston]

Stablecoins' step toward mainstream could shake up parts of US Treasury market

Congress is poised to pass legislation establishing a regulatory framework for stablecoins, expected to help legitimize the dollar-pegged cryptocurrencies which are commonly used by crypto traders to move funds between tokens.

Proponents of the bill argue that clear rules will spur further stablecoin activity, and support a growing sector of buyers of short-term US government debt, or T-bills, that are typically considered cash-equivalent securities.

But others worry a larger footprint for a relatively new and more volatile industry could in turn spur volatility in the bills market.

In the event of a sudden loss of confidence, regulatory pressure, or market rumors, this could trigger large-scale liquidations, potentially depressing Treasury prices and disrupting fixed-income markets.

A problem in the stablecoin sector could spill over into broader financial markets, affecting institutions holding similar assets or (that) rely on stablecoin liquidity.

If signed into law, the stablecoin bill would require tokens to be backed by liquid assets - like US dollars and short-term Treasury bills - and monthly disclosures from issuers on the composition of their reserves. That means if stablecoins are expected to grow, issuers will have to purchase more T-bills to back their assets.

Tether and Circle, the latter of which debuted on the NYSE on Thursday, together hold US$166 billion (HK$1.29 trillion) in US Treasuries,

The stablecoin market, currently about US$247 billion, could grow to US$2 trillion by 2028.

Currently, there are about US$29 trillion in Treasury securities outstanding, of which US$6 trillion are bills.

JP Morgan analysts estimated that stablecoin issuers could become the third-largest buyer of Treasury bills in the coming years.

Growth of the stablecoin market at the expense of bank deposits could reduce banks’ demand for US Treasuries, as well as have an impact on credit growth.

Source: The Standard

https://www.thestandard.com.hk/wealth-a ... le/304188/

[behappyalways]

Japan 30-Year Bond Yield soaring above 3%
https://x.com/Barchart/status/1942414360678211977

[behappyalways]

FRENCH 30-YEAR YIELD RISES 2 BPS TO 4.21%, HIGHEST SINCE 2011
https://x.com/zerohedge/status/1943597704216514795

[behappyalways]

GERMAN 30-YEAR YIELD RISES 3BPS TO 3.254%, HIGHEST SINCE 2023
https://x.com/zerohedge/status/1944666936131883403

[behappyalways]

No, it's not Bitcoin. It's the UK sovereign bond yield.

New highs, worse than Greece or France.
https://x.com/dlacalle_IA/status/1944676745145389163


Japan 30-Year Bond Yield jumps to all-time high of 3.20%
https://x.com/Barchart/status/1944919147491516869


US 30-YEAR YIELDS RISE TO 5% FOR FIRST TIME SINCE JUNE
https://x.com/zerohedge/status/1945131911451459645

[behappyalways]

Political turmoil cools bond market, 40-year Japanese bond yield hits record high! Japanese yen and Japanese bonds weaken, but Japanese stocks once surged to 42,000

政治動盪債市冷 40年期日債殖利率創高! 日圓.日債走弱 日股卻一度衝上4萬2｜非凡財經新聞｜20250724

https://m.youtube.com/watch?v=1NpO7GUt26E

[behappyalways]

#China bond yields (CGBs) starting to break higher. Note term premia have snapped losing steak (black line). Economy recovering?
https://x.com/crossbordercap/status/1950662975523577911


Bessent Unleashes Treasury Buyback Overhaul In Major Step To Yield Curve Control, Doubles Down On Bill Dominance
https://www.zerohedge.com/markets/besse ... ubles-down

[behappyalways]

Very Ugly, Tailing 10Y Auction Sees Slide In Foreign Demand, Plunge In Bid To Cover
https://www.zerohedge.com/markets/very- ... -bid-cover

[behappyalways]

Yields Spike After Very Ugly, Tailing 30Y Auction Sparks Steepening Fears
https://www.zerohedge.com/markets/yield ... ning-fears