U.S. Stocks Rally Strongly! 🚀

The U.S. stock market made a big comeback, with the S&P 500 opening 1% higher yesterday and closing at the day’s high—something we haven’t seen since July 2022!  $Tesla Motors(TSLA)$ in particular, continued its strong momentum from last Friday, surging another 12%. That’s a 17% jump in just two days—is it turning into a "meme stock" again? 🤣

While the stock market soared, safe-haven assets pulled back—both gold and bond prices declined. So, should investors be aggressive or cautious right now? Personally, I’m not too worried about bond yields surging again, as the Fed remains neutral, insisting on a data-driven approach. Meanwhile, the bond market has shifted its focus to a new theme—the "Bessent Put."

Over the past two months, the 10-year U.S. Treasury yield has dropped about 0.5 percentage points, leading to a new market consensus: "Don’t fight the Treasury." Investors believe the Treasury’s policies are keeping yields in check and supporting bond prices.

Major investment banks have lowered their year-end yield forecasts:

📉 RBC: 4.7% → 4.2%

📉 Barclays: 4.3% → 4.0%

📉 Société Générale: 4.5% → 3.8% (a massive 0.7% drop!)

Treasury Secretary Bessent is taking concrete steps to suppress and stabilize 10-year yields, including:

✔️ Reducing the size of 10-year bond auctions

✔️ Easing banking regulations to stimulate bond demand

✔️ Advocating for changes to the Fed’s Supplementary Leverage Ratio (SLR), which would allow banks to hold more Treasuries without needing excessive additional capital

This SLR policy change could increase demand for Treasuries, lower borrowing costs for the government, and support bond prices—all in line with the Treasury’s objectives.

@TigerStars  @Tiger_comments  @TigerPM  @Daily_Discussion  @TigerObserver  $iShares 20+ Year Treasury Bond ETF(TLT)$