Citadel Securities and BNY Mellon are pursuing separate paths in tokenizing US Treasuries, utilizing different blockchain infrastructures to modernize settlement processes.
The yield spread between the S&P 500 and 10-year Treasuries has fallen to -1.5%, marking the lowest level since 2009 as government bonds outperform stocks in yield.
Stablecoin issuers have become major buyers of US Treasury debt, offsetting 40% of China's recent divestment, according to new Federal Reserve research.
Pantera Capital reports that 81% of tokenized US Treasuries are held rather than traded, while the total tokenized asset market has grown to $321 billion.
State Street and Galaxy have launched the SWEEP tokenized fund, enabling institutional investors to earn yields on stablecoins through US Treasury-backed assets.
The 10-year US Treasury yield has climbed to 5.11%, hitting its highest point since 2007 and causing yield spreads with emerging Asian bonds to reach extreme levels.
HSBC has revised its year-end forecast for 10-year Treasury yields to 4.65%, citing market cooling and shifting expectations for Federal Reserve policy.
A decline in Brent crude prices has eased pressure on US Treasury yields, reducing market expectations for aggressive Federal Reserve interest rate hikes.
Europe's largest asset manager, Amundi SA, is buying two-year US Treasuries to hedge against an economic slowdown driven by rising oil prices.
The stablecoin market has surpassed $300 billion in capitalization, with two major issuers holding the vast majority of supply and significant portfolios of US Treasury bills.
CME Group is launching a new clearing house, CMESC, to compete in the US Treasury market and help participants meet upcoming SEC central clearing mandates.
Foreign holdings of US long-term securities have reached a record $39.19 trillion, doubling since 2022 and signaling a shift toward private capital in American markets.
