Scale Doubles! What Signal Does the U.S. Treasury’s Announcement to Expand Long-Term Treasury Buybacks Send?

Following a sharp sell-off in U.S. Treasury securities, the U.S. Department of the Treasury intervened urgently by announcing a significant expansion of its long-term Treasury repurchase operations. Consequently, yields on long-dated Treasuries declined rapidly, with the 30-year yield dropping to 5.193% at one point. Meanwhile, the U.S. Dollar Index plunged sharply, while precious metals markets surged across the board.

Securities Times ChinaAug 19 22:44

Gold Prices Pop After Treasury Moves to Push Down Bond Yields -- WSJ

WSJAug 19 22:02

Express News | The U.S. Department of the Treasury announced an expansion in the scale of long-term nominal Treasury bond repurchases.

BreakingsAug 19 20:32

Critical Moment for U.S. Treasuries: $16 Billion Long-Term Bond Auction and Fed Minutes to Test Markets on Thursday

Amid global bond market volatility, the U.S. market faces two major tests on the same day: a $16 billion auction of 20-year Treasury notes will gauge long-end demand amid massive deficits, while the Federal Reserve’s July hawkish meeting minutes will influence short-end rate hike expectations. If these factors resonate, they could drive the yield curve higher overall, exacerbating pressure on highly valued tech stocks and global financial markets.

wallstreetcnAug 19 16:12

As the 60/40 portfolio strategy falters, is gold taking center stage as a defensive asset? Morgan Stanley’s Wilson: The bull market will continue into 2025.

Mike Wilson, Chief Investment Officer at Morgan Stanley, argues that the simultaneous decline in equities and bonds in 2022 exposed the defensive limitations of the traditional 60/40 portfolio. As the correlation between stocks and bonds rises, investors need to seek new hedging instruments, thereby enhancing gold’s allocation appeal. The bank forecasts that the Federal Reserve will cut interest rates once each in January and March 2027; if this path materializes, ETF funds are expected to flow back into the gold market.

wallstreetcnAug 18 16:34

Gold short squeeze enters second phase: macro signals align with technicals, $4,500 emerges as key resistance

Analysis indicates that the technical outlook for gold confirmed a bullish crossover with the 50-day moving average on the 21st, while the macroeconomic landscape saw a return to dual resonance driven by Federal Reserve interest rate expectations and Japan's ultra-long-end yields.

wallstreetcnAug 18 12:27