Aug. 3 at 9:30 PM
$AG
Hold the euphoria.... this is all a temp reaction to the Yen/ Dollar gimmick between Bessent and the BOJ. It weakened the dollar and lowered bond yields....both good for gold. Problem is is it's a temporary fix.
The BOJ took
$91B of US treasuries/ bonds and sent them over to the Repo and parked it there for Yen... as they mature, then the proceeds are used to satisfy the obligation, and roll off the books.... the rub is the funds are no longer rolled over into more treasuries which puts the Treasury
$91B further in the hole looking for new buyers.
I'll give them kudos for whipping out a win win from their asses... weaken the dollar, strengthen the yen. Eventually Japan runs out of treasuries, then what?