BREAKING: China acquired +40 tonnes of gold in June via the London OTC market, marking their 2nd-largest monthly purchase since early 2025.
This is 167% more than the official +15 tonnes reported by China's central bank for June.
This also follows an estimated +48 tonnes acquired through the OTC market in May, +380% above the +10 tonnes officially reported by the central bank.
Meanwhile, China’s central bank officially added another +20 tonnes of gold in July, its largest monthly purchase since October 2023.
Year-to-date, China has officially increased its gold reserves by +60 tonnes, bringing total holdings to a record 2,366 tonnes.
Therefore, China acquired an estimated +88 tonnes of gold through the OTC market in just May and June, more than the amount officially reported for the entire year so far.
China is buying far more gold than their official data shows.
Hedge funds are ramping up bearish dollar bets as they await more details on Treasury Secretary Scott Bessent’s new fiscal plan to address the highest borrowing costs in years. https://t.co/gZ3a8PN41f
🚨BREAKING: Bessent to unleash a $1 TRILLION war chest to rescue the US bond market.
That is 250X the Treasury’s new $4 billion for a single long-term bond buyback operation.
According to CNBC, the Treasury could tap its nearly $1T Treasury General Account to fund expanded bond buybacks.
The move could lift bond prices and push long-term yields lower without requiring the Fed to intervene.
This comes after Treasury doubled buybacks from $2B to at least $4B per operation.
But the relief quickly faded and the 30Y yield returned to around 5.25%, showing that far more support may be needed.
Drawing down Treasury cash could also inject major liquidity into markets, potentially benefiting stocks and crypto.
The full $1T has not been committed, but it represents the Treasury’s potential firepower.
The bond market just learned how big Bessent’s bazooka could be.
BREAKING: 🇺🇸 A US Treasury official says the government could use its General Account at the Fed to fund bond buybacks.
The Treasury currently holds around $935 billion in that account.
Unlike the original plan, this would not require issuing new debt to fund the purchases.
Drawing it down to buy bonds would inject cash directly into the financial system.
That is effectively money printing, not just a rearrangement of existing debt.
Historically that has been bullish for assets like crypto, gold and stocks.