In June, the U.S. Treasury bond swap may release a large amount of liquidity. I guess the real altcoin season will arrive in June-July. Altcoins, small-cap U.S. stocks, and gold may all see a bullish trend, which can be called the "U.S. Treasury bond swap bull" 🐂

In June, there will be $6.5 trillion in bonds maturing, of which at least $1.42 trillion in new bonds must be issued to replace the old bonds. Who will buy this $1.42 trillion in new bonds? At what interest rate? This is the key to the liquidity release.

Firstly, don’t expect the old China 🇨🇳 to buy. After a series of actions by the Trump administration, it is unlikely that China will support the U.S. with real money like it did in 2008. In fact, China reduced its holdings of long-term U.S. Treasury bonds by $27.6 billion in March, and the second-largest holder of U.S. bonds is now the UK 🇬🇧, with China having fallen to third place.

Since the old 🀄️ will not buy, the likelihood of other allies purchasing U.S. Treasury bonds is also minimal. On one hand, no country can bear such a massive amount of debt; on the other hand, if foreign capital is to accept such a large volume of U.S. bonds, U.S. bond yields will rise significantly, which is something the Trump administration cannot afford, as it means paying high interest 💰.

So, looking at it this way, the only solution for the U.S. Treasury bond swap in June seems to be the Federal Reserve...