Market Volatility Declines Amid Economic Calm

According to Odaily, QCP Capital has noted a continued decline in volatility across most asset classes due to a lack of significant news flow and macroeconomic data, leading to a period of market calm. Despite ongoing news, the market appears increasingly indifferent to negative headlines that once might have triggered strong reactions. U.S. Treasury yields have fallen following fiscal turmoil caused by the recent 'Grand Beautiful Act,' although the debt-to-GDP ratio remains above 120%, with the new act expected to increase national debt by $3.8 trillion. The yields on 10-year and 30-year U.S. Treasuries have dropped below 4.5% and 5.0%, respectively, while Japan's 30-year bond yield has fallen below 3%. Historically, these levels are still high, but short-term risks have eased. The market's focus is shifting to the upcoming auctions of 10-year, 20-year, and 30-year U.S. Treasuries in June. Meanwhile, Japan's Ministry of Finance plans to issue 40-year bonds today, with 30-year bonds scheduled for next week. The ministry is aware of market resistance to long-term bonds and seems prepared to adjust issuance strategies to stabilize the long end of the yield curve. Ironically, the market is now in a 'just right' zone, with recent data largely unaffected by last month's tariff policies. Businesses and consumers need time to adjust pricing and spending patterns, which may not be reflected in data until the third quarter. The Federal Reserve appears to agree, choosing to overlook recent data unless the economy deteriorates sharply. Senator Lummis's broad remarks on stablecoins and Bitcoin strategic reserves have reignited hopes for substantive progress in cryptocurrency policy. Since the current administration took office, digital asset plans have been lukewarm, but this meeting could provide the necessary momentum to re-engage the White House. Additionally, Trump Media plans to raise $2.5 billion to join companies establishing Bitcoin reserves. If the meeting generates momentum, more companies may follow the strategies of Strategy and Metaplanet, offering new structural buying opportunities for the market.