📊 BIG: Tether holds $127B in US Treasuries, surpassing South Korea.Will it flip Saudi Arabia soon? https://t.co/YFVZ9XnCJR ...

Investors in US Treasuries will scour employment data Friday for clearer evidence of a hiring slowdown that could open the door to the Fed cutting interest rates in September https://t.co/4jMhlg79Dv ...

💥BREAKING:TETHER REPORTS A NET PROFIT OF $4.9B IN Q2 AND BECOMES ONE OF THE LARGEST HOLDERS OF US TREASURIES WITH $127B IN HOLDINGS. ...

Market Trend & Government Influence - The government, through institutions like Wall Street, may drive up Bitcoin's price [1] - This strategy could increase the demand for Stable Coins, which are backed by US Treasuries, thus increasing US debt [1] Bitcoin & Stablecoin Dynamics - Jack Mallers suggests the government is using institutions to manipulate Bitcoin [1] - The rise in Bitcoin price will require equal amounts of Stable Coin [1]

Strategy's new variable rate preferred $STRC has a 9% initial yield, and is targeting money market funds.A $7.05 trillion market, about 25% of all US Treasuries, yielding just ~4.25%.Bitcoin is about to swallow the fixed income market. https://t.co/oulrRugBYVDylan LeClair (@DylanLeClair_):Money market funds is a big market… ...

Market Reaction - Short-maturity US Treasuries saw a price increase [1] - The US dollar experienced a sharp decline [1] Policy & Leadership - A White House official indicated that President Donald Trump is likely to dismiss the Federal Reserve chief soon [1]

stablecoin markets splitting into two clear paths:• regulated: banking licenses + government approval• alternative: mining + broader crypto integration$159.9B USDT + USDC creating parallel systemsus treasuries in reserves:• circle: 100%• tether: 88%infrastructure race accelerates ...

Market Stability - US Treasury market volatility gauge fell to its lowest level in nearly three-and-a-half years [1] - The decline in volatility suggests the market is stabilizing after months of turmoil [1]

Market Trends & Global Financial System - Investors are wary of longer-dated debt due to market volatility [1][4] - The financial system is repricing from a unipolar to a multipolar system [2] - Central banks are prioritizing financial stability over price stability, leading to higher inflation [3] Investment Strategies & Asset Allocation - Investors should consider hard assets like gold and private credit [3][4] - It's better to stay closer to home and position for upside in markets like equities or commodities [5] US Economic Outlook & Fiscal Policy - Tariffs won't generate enough capital to sustain the deficit [2] - The US may face austerity measures, including spending cuts, potentially starting in 2026 [2][5] - Voters are showing less tolerance for fiscal profligacy [6] - The US can continue spending at a clip of 6-7%, but eventually needs to find ways to fund the Treasury, cut spending, or depreciate the currency [7]

Market Trends & Bitcoin - Bitcoin reached a new all-time high just shy of $112,000 [1] - Bitcoin ETFs are seeing billions of dollars flowing in [1] - Bitcoin-related companies like Block and MicroStrategy are rising [1] Currency & Dollar Weakness - The dollar has declined over 10% year-to-date [3] - Lower front-end interest rates, reallocation out of the US, and hedging are driving dollar weakness [4][5] - The dollar's decline may continue due to allocation shifts and historical trends [6][7] - The dollar is at roughly fair value, but currencies never stop at fair value [6] Federal Reserve & Interest Rates - Expectation of less Fed independence is causing a change in Fed funds expectations next year, with the market expecting significantly lower interest rates around May/June [10] - Less Fed independence is causing slightly higher longer-term inflation expectations [10] - Foreign investors holding US treasuries in very short tenor bonds (three years and less) may let them expire, impacting demand [12] Treasury & Stablecoins - Relaxing the SLR (supplementary leverage ratio) could help Treasury demand [14] - Increased demand for stablecoins, backed by Treasury bills, could help short-end demand but steepen the yield curve [14][15] - The long end of the yield curve, impacting mortgage rates and business loans, will be hard for the Treasury to control [15] Equity Markets & Valuation - US stocks are fairly richly valued at 22 times 12-month forward price earnings, especially versus peers overseas [17] - Concentration and bullishness are increasing in equity markets [18] - Higher inflation and significantly slower growth are expected later this year [19]