Tokenization Adoption - Sei Network is attracting major players in tokenization [1] - Ondo Finance and Securitize, representing over 50% of the tokenized Treasury market, are choosing Sei [1] Institutional Interest - Institutions are converging on Sei as a settlement layer for global-scale markets [1] Performance Claim - Real World Assets (RWAs) move faster on Sei [1]

Well, now we're going to dig a little deeper into the Treasury market where the tenure is hovering below a key level. Rick Santelli joins us now from Chicago with the bond report. Yes, indeed.And we might be hovering below a key level at four and a quarter, but we're well above a very significant level, 4%. If we look at this morning's data, one thing that really stuck out, we indeed did have strong personal income and spending as you were just discussing. But taking politics out, inflation's sticky.I don't ...

Well, now we're going to dig a little deeper into the Treasury market where the tenure is hovering below a key level. Rick Santelli joins us now from Chicago with the bond report. Yes, indeed.And we might be hovering below a key level at four and a quarter, but we're well above a very significant level, 4%. If we look at this morning's data, one thing that really stuck out, we indeed did have strong personal income and spending as you were just discussing. But taking politics out, inflation's sticky.I don't ...

Monetary Policy & Inflation Outlook - The independence of the Federal Reserve is critical for both the current and future chairs [1] - The market is pricing in a full point (100 basis points) of rate cuts by the Fed this year [1] - Inflation is primarily a fiscal and monetary phenomenon, not driven by tariffs [3] - The industry anticipates soft growth numbers will lead the Fed to ease policy, potentially finding themselves behind the curve in September [6][10] Fiscal Policy & Economic Conditions - Government spending growth has slowed significantly, from a 45% increase in the first six months of fiscal year 2021 to a 5% increase currently [4] - Money supply growth has also slowed, from 27% to 4%, compared to a 50-year average of 6-7% [5] - The industry does not expect a significant inflation surge due to the changes in fiscal and monetary policy [6] Treasury Market & Investment Strategy - The industry suggests underweighting the back end of the Treasury market, maintaining a 70% stocks, 30% bonds allocation [7] - There is pressure on the back end of the curve due to factors such as the JGB market, slowing of QE in Japan, and spending out of Germany [8] - The two-year to five-year part of the Treasury curve may represent a good investment opportunity if weak economic data emerges [9]

Supplementary Leverage Ratio (SLR) Reform - Banking agencies are proposing changes to the supplementary leverage ratio, but the proposal under consideration may not exclude treasuries from the SLR calculation [2] - The Treasury Secretary argued that excluding treasuries from SLR could boost banks' ability to intermediate in the Treasury market and potentially lower Treasury yields by 30 to 70 basis points [2] - The Fed Chairman agrees that a binding leverage ratio discourages banks from low-margin activities like Treasury market mediation, and SLR reform should encourage more mediation [3] - The Fed temporarily excluded treasuries from the SLR calculation during the Covid pandemic as an emergency measure, and the Fed is now considering a permanent measure [5] Community Reinvestment Act (CRA) - The Federal Reserve, FDIC, and OCC intend to issue a notice of proposed rulemaking to repeal the 2023 Community Reinvestment Act and replace it with the legacy CRA framework [7] - The agencies are determining whether to issue a clean rescission and replacement of the rulemaking or consider amendments to the legacy rule [8] Supervision of Novel Activities Program - Changes could be made to the Supervision of Novel Activities program to encourage innovation [9] - Vice Chair Bowman is knowledgeable and experienced in supervision and can move supervision in a healthy direction while preserving safety and soundness [9][10]

Market Anomalies - Historically, the dollar index increases when the S&P 500 declines by more than 10%, but recently the dollar decreased while the S&P 500 fell almost 20% [1] - Typically, the 10-year Treasury yield decreases following the first Federal Reserve rate cut, but this time it increased, and the yield curve is steepening [2] US Treasury Market & Debt - The US faces an unsustainable interest expense due to a $21 trillion budget deficit and persistent interest rates [3] - The average coupon on Treasuries has risen from below 2% to nearly 4% [3][4] - Maturing bonds issued in 2008, 2009, and even 2019 with coupons as low as 025% are being replaced with bonds at 425%, a 400 basis points increase [4][5] - The long-term Treasury bond is losing its status as a reliable flight to quality asset, not responding as expected to lower interest rates or the current 25% inflation rate [5] Inflation Outlook - Near-term inflation is likely to rise, as the cumulative headline CPI rolling off from a year ago was 01%, while the most recent CPI was 018% [6] US National Debt Concerns - The US national debt is rapidly approaching $37 trillion, requiring innovative solutions [7]