All right. So, yesterday I spoke about this enormous divide in this country now between the have and have nots. Uh particularly, uh we saw this the Michigan consumer sentiment number on Friday still making headlines. It tumbled to one of the worst readings ever. Uh and here's the thing that's really interesting. You have to notice that it's never ever ever approached. Take a look at this. It's never approached the high point back in 2000. So, that's intriguing, right? It traded with the market hand in hand. ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the U.S. Treasury (UST) market and the evolving demand dynamics since April 2025, particularly in the context of "de-dollarization" and foreign official sector selling [2][9][19]. Core Insights and Arguments 1. **De-dollarization and UST Demand**: - There has been a notable decline in UST custodial holdings from the foreign official sector, dropping approximately $170 billion since late April 2025, despite a recent recovery of about $25 billion [9][10]. - This decline coincides with a weaker dollar and lower foreign reverse repurchase agreement (RRP) balances, indicating a potential reduction in USD holdings by officials [9][10]. 2. **Foreign Private Demand**: - Foreign private investors have significantly increased their UST holdings, with total foreign private buying nearly ten times the amount of official selling since the end of 2022 [19][20]. - This divergence suggests that while the official sector is a net seller, private demand remains robust, supporting the overall UST market [19][21]. 3. **Domestic Bank Purchases**: - Domestic banks have purchased around $160 billion in USTs since April 2025, offsetting much of the implied selling from custodial accounts [27][28]. - The increased bank buying is attributed to attractive asset swap valuations and a steeper front-end curve [27]. 4. **Investment Fund Activity**: - Investment funds continue to dominate UST auction demand, with inflows into UST fixed income funds remaining firm over the past year [30][36]. - Active fund inflows year-to-date have been among the strongest in the last five years, indicating a strong appetite for USTs [37][38]. 5. **Positioning Trends**: - Positioning among funds is described as modestly long and in steepeners, with a shift observed in the front end of the curve [34][35]. - Commodity Trading Advisors (CTAs) remain long based on momentum signals, which could exacerbate a selloff if rates trend higher [35][36]. 6. **Market Dynamics**: - The UST market is characterized by a flattening bias in the yield curve, driven by out-of-the-money longs at the front end and shorts at the back end [31][33]. - The overall demand landscape for USTs is supported by low volatility and the effects of virtual Treasury quantitative easing [2][36]. Additional Important Insights - **Foreign Official Selling**: - The relationship between foreign official holdings and UST spreads has shown little sensitivity, suggesting that other buyers are stepping in to absorb the selling pressure [17][19]. - **Hedged Pickup Analysis**: - The hedged pickup for USTs compared to local alternatives is currently negative for major foreign investor types, indicating potential challenges in attracting foreign investment [77][80]. - **Upcoming Economic Indicators**: - A calendar of upcoming U.S. economic data releases and Federal Reserve events is provided, which may impact UST demand and market sentiment [41]. This summary encapsulates the key points discussed in the conference call, highlighting the dynamics of the UST market, the contrasting behaviors of foreign official and private investors, and the positioning trends among domestic banks and investment funds.