“Selling bonds, buying bitcoin,” proclaimed a popular social media account last week, echoing the feelings of many defenders of cryptography who believe that the volatility induced by prices on the American treasury market – a cornerstone of global finance – revealed the fragility of the monetary system called in dollars. However, institutions do not accept this story.
On Monday, the 11 FNB Bitcoin of 11 American points, considered as an indirect indicator of institutional activity, were on the right track to record the second highest cumulative monthly outing of more than $ 800 million, according to the Sosovalue data source. The funds bled a record of $ 3.56 billion in February and $ 767 million in March.
Meanwhile, the three -month treasure bills sold on Monday auction on Monday sparked a high demand from institutions. According to the CME data source, the US Treasury sold $ 80 billion in three -month tickets at an interest rate of 4.225%, compared to 4.175% previous. Likewise, he sold $ 68 billion in six -month tickets at an interest rate slightly greater than 4.06%.
However, the submission / coverage ratio, representing the number of offers received compared to the number of offers accepted, because three -month tickets increased to 2.96 against 2.82. In other words, for each three -month -old note offered, nearly 3x other offers have been received. The six -month ticket ratio increased slightly to 2.90 against 2.79.
The strong absorption indicates that institutions still consider American debt as a paradise. T -in T -bills are very liquid and considered at low risk, making it the preferred choice for guarantees on the standard of standards (buyout agreement). In a repo transaction, a party sells T Tickets or other titles to another, agreeing to buy them later, allowing the seller to access short -term funding.
Institutions generally park money in T-bills when the economic prospects are uncertain, calling for flexibility in investments rather than a commitment in long-term positions.
President Donald Trump’s full -fledged trade war against China and other major business partners has reached uncertainty to such an extent that it is possible for a sudden power outage in the advice of companies in Wall Street. According to Inc, the Bofa management ratio at 3 months – which follows the number of companies above compared to consensual councils below a consensus – fell to 0.4x, its lower since April 2020 and below its historical average of 0.8x.
Meanwhile, American recession ratings have increased above 50% on Paris platforms, yields linked to high Japanese obligations further complicating questions for risk assets.
