Brothers, the most interesting part of this U.S. Treasury buyback isn’t how much debt the Treasury bought. It’s that the market’s trading logic has changed. Before, when people saw high U.S. deficits, large debt supply, and inflation not fully under control, the most straightforward trade was shorting long-term bonds, pushing up long-term yields. The logic was simple: High deficits mean more debt issuance. More supply means lower prices. Lower prices mean higher yields. Higher yields mean higher interest expenses for the U.S. Treasury. Higher interest expenses further expand the deficit. This creates a dangerous negative feedback loop. So when the 30-year U.S. Treasury yield approached 5.3%, the market was essentially asking the Treasury one question: How high of a long-term yield can you tolerate? Now we have the answer. The Treasury expanding long-term bond buybacks is essentially telling the market: Long-term yields can be high, but they can’t spiral out of control. This shifts the trade from simple shorting to a game of policy dynamics. Previously, those shorting long-term bonds only needed to focus on deficits and supply. Now they also have to consider whether officials will step in again, whether buyback sizes will continue to grow, and whether there will be some implicit coordination between the Treasury and the Fed. This explains why we’re seeing a short-term market rebound. Long-term bonds are being supported, yield pressure is easing, the dollar is weakening, and gold is surging. U.S. stocks are also rebounding, but not as decisively as gold, because equities still face challenges like earnings, valuations, and AI-related capital expenditures. In my view, this is short-term bullish for asset prices, but it calls for more caution in the medium term. Because the underlying issues haven’t disappeared—they’ve just been suppressed. The Treasury wants to lower long-term yields, while the Fed needs to prevent inflation from resurging. Fiscal policy aims to stabilize the market, but monetary policy can’t turn dovish too quickly. These two signals combined make the market comfortable in the short term, but increasingly sensitive in the medium term. So this isn’t a resolution of the conflict—it’s the conflict entering a more complex phase. In the short term, asset prices have a floor, with gold and rate-sensitive assets benefiting the most. In the medium term, if deficits, debt supply, and inflation issues remain unresolved, the U.S. bond market will continue testing policy limits. The key to this round of market action isn’t how much debt the Treasury bought today. It’s whether the 30-year U.S. Treasury yield approaches 5.3% again—and whether officials will step in further.