Equities Surge as SPYTLT Peaks; Crypto Sees Liquidations

  • SPY/TLT ratio retests 140, its highest level since January 2025 inauguration peak.

  • Equity rally lifted stocks 1%, widening performance gap versus long Treasuries this week.

  • Crypto faces $320M liquidation amid rising tensions, but ETF inflows show institutional trust.

US equities have hit their strongest position relative to bonds since the inauguration of the US president, which marks a crucial turning point in the international financial markets. In the recent session, stocks closed up by nearly 1%, with the SPY/TLT ratio, a crucial indicator of the comparative performance of the S&P 500 ETF and the iShares 20+ Year Treasury Bond ETF, retesting the all-time high first achieved in January 2025. 

Market analysts, including Eric Balchunas, have highlighted how equities have repeatedly overcome bearish market narratives, reinforcing investor confidence. However, despite a 21% gain from April lows, the S&P 500 has struggled to break through the 6,000 level for over a month.

Stocks Outperform Bonds as Risk Appetite Returns

The latest chart data indicate that the ratio began growing in early January 2024, reaching a value of 100, and then increased steadily t…

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