We have been highlighting for several weeks tightening systemic liquidity. Bloomberg reports that primary dealers (Wall Street banks) have pushed back against Fed officials who have urged them to use the Fed’s Standing Repo Facility (SRF) to ease mounting strains in short-term borrowing markets. The primary dealers told Fed officials at a recent meeting that borrowing from the SRF still carries a stigma which could be interpreted as a sign of trouble. Stay tuned…
The EU’s Executive VP for Industrial Strategy Stephane Sejourne said the EU plans to set up a centralized authority to build and maintain an inventory of critical minerals to avoid having the U.S. snatch the world’s critical minerals “from under our noses.” Sejourne emphasized last year’s Critical Raw Materials Act which sets a target for recycling to meet 25% of EU demand for critical minerals by 2030.
Markets are not pleased with the fiscal aspirations of Japanese Prime Minister Sanae Takaichi. Japan’s 20-year yield hit 2.81% on Tuesday (highest since 1999), 30-year yield jumped 5.5bps to 3.31%, and 40-year yield touched 3.68% (highest since 2007 inception). The Nikkei fell 3.2% (biggest one-day decline since 4/9/25).
Investors withdrew a single-day record $523 million from Blackrock’s iShares Bitcoin Trust on Tuesday, marking the fifth straight day of (accelerating) redemptions.
Euro Stoxx 50 +0.1%, S&P futures +0.3% and Nasdaq futures +0.4%. DXY dollar index +0.1%, spot gold +1.2% and spot silver +3% (gold/silver ratio at 78.8).
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