Ten31 Timestamp
Ten31 Timestamp 816,314
Stocks and bonds broadly sustained their rally from last week despite ongoing signs of deterioration in global financial plumbing.
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Stocks and bonds broadly sustained their rally from last week despite ongoing signs of deterioration in global financial plumbing. The most notable headline from the week was the US Treasury’s especially weak auction of new 30-year bonds, which resulted in the highest tail for a new issue since 2016 – the mainstream press generally attributed the very soft result to a cyberattack on a major Chinese bank, but we would probably contend that this isn’t exactly a cause for relief even if entirely true. The US commercial real estate backdrop also worsened on the week, with banks’ exposure to delinquent loans making new decade highs before even accounting for the downstream impacts of WeWork’s bankruptcy, which was officially filed this week. Meanwhile, consumer expectations for inflation once again ticked up in the latest benchmark survey data, potentially putting the Fed in an increasingly awkward position, as unanchored inflation expectations will likely move higher if the central bank tries to respond to growing signs of underlying macro stress with some form of easier monetary policy. The capstone for the week came late Friday, when ratings agency Moody’s downgraded its outlook for US sovereign debt to negative.
While bankers around the world rushed to complete Treasury auctions with thumb drives, the Ten31 team was spending the week at Nostrville, a multi-day summit at Nashville’s Bitcoin Park devoted to the organic explosion of development taking place in the Nostr ecosystem. This decentralized communications protocol is still nascent, but the pace and volume of innovation on display for a protocol that only really took off late last year is staggering. We expect to continue closely following and supporting the ecosystem as it matures and becomes a more critical pillar in the freedom tech stack.
