TRIPWIRE — Principals

SYSTEM DEGRADED generated 2026-09-07T07:54:08+00:00

5 policymakers · 4 blocs · 4 moving their way · 5 mixed. Each row scores a short list of numbers against what that actor wants — the change over the stated window is either toward it or against it, and the verdict is the tally. Their own tools are shown but not scored. Open a row's full card for the argument.

statedtheir own words, datedrevealedinferred from a dated actionattributeda named analyst's readinginferredour reasoninghouse analysishouse expectation, with its disconfirmer
Kevin Warsh policymaker

Runs the Fed, so he sets the short-term interest rate. He wants inflation back down to 2% and has said that is the job. His nightmare is people deciding inflation is here to stay, because then the rate has to go much higher to prove otherwise.

next decision: 2026-09-16 FOMC — hold 3.50–3.75% or hike 25bp
house base case: Hike 25bp, no guidance about the next one. Jackson Hole moved the September distribution 21.5pp toward a hike; a hold after that reads as a retreat unless the p
◆ mixedpast their line: pce target1 their way · 2 against · 3 scored
Inflation — PCE, yearly change
line 2% · +1.70 · breached
3.7%-0.10% / 90d→ their way
Core inflation — PCE ex food & energy, yearly3.34%+0.01% / 90d← against
Where markets think inflation lands (5y5y forward)2.33%+0.12% / 60d← against
Unemployment — his escape hatch, not a goal4.1%-0.20% / 90dtheir tool — not scored
The fed funds rate — his tool3.63%+0.00% / 60dtheir tool — not scored
Scott Bessent policymaker

Runs the Treasury, so he has to borrow about $700bn a quarter without long-term yields blowing up. He wants the 30-year yield lower and has already spent two tools on it (a joint yen operation, doubled bond buybacks). His nightmare is a bond auction nobody wants to buy.

next decision: 2026-09-10 First enlarged long-end buyback (10Y–20Y, cap at least $4bn) — then the 11-04 QRA: coupon
house base case: Renew and enlarge the buybacks at 11-04, keep coupons flat, stay bill-heavy; escalate the cap first if the 30Y retests 5.34. He has already narrated the next st
◆ mixed2 their way · 3 against · 5 scored
30-year yield
line 5.34% · -0.09 · clear
5.25%+0.07% / 30d← against
10-year yield
line 4.8% · -0.03 · clear
4.77%+0.14% / 30d← against
Term premium — what buybacks are aimed at0.88%+0.20% / 60d← against
Treasury's cash balance vs its stated path
line 950$bn · +17.93 · marked
967.93$bn+57.16$bn / 30d→ their way
The yen (USD/JPY) — the allied front156-1.80 / 30d→ their way
The White House policymaker

Wants lower rates, a strong stock market and cheap gasoline by the midterm election on November 3rd, and has said he will not lean on the Fed chair over a hike. His only direct levers are tariffs, spending, the oil reserve, and what he says out loud.

next decision: 2026-09-16 How to react if the Fed hikes — and the fixed date behind everything, the 11-03 midterm
house base case: Quiet on the Fed, loud everywhere else. He pre-empted the fight on 08-31, and the tools that work before November are Treasury's and the oil reserve's.
◆ mixed2 their way · 2 against · 5 scored
30-year mortgage rate6.71%+0.28% / 60d← against
The fed funds rate3.63%+0.00% / 60d= flat
Stocks — S&P 5007,719+181.17 / 60d→ their way
Oil — WTI91.48$+21.75$ / 60d← against
Unemployment4.1%-0.20% / 90d→ their way
Bank of Japan & Ministry of Finance policymaker

Japan's central bank and finance ministry. They spent tens of billions in late July to stop the yen collapsing past 163 and got it to 157; a third of that has already come back. A rate hike on September 18th is the only fix everyone agrees would hold — and it hurts their own bond market.

next decision: 2026-09-18 BoJ monetary policy meeting — hike or hold (about 99% priced for a hike, secondary source)
house base case: Hike, and a second joint intervention threatened before the meeting if USD/JPY retakes 163 — the 08-03 language exists to make the threat credible without spend
▼ moving their way2 their way · 0 against · 2 scored
The yen (USD/JPY) — lower is stronger yen
line 163.73 · -7.73 · clear
156-1.80 / 30d→ their way
Their dollars parked at the New York Fed — the war chest357.22$bn+19.78$bn / 60d→ their way
Japanese 10-year yield — their tool, and their cost2.67% STALE+0.33% / 90dtheir tool — not scored
People's Bank of China / SAFE policymaker

China's central bank. It has bought gold for 21 months straight and keeps the yuan on a short leash. We only ever see it in the price — there is no purchase or reserves series here — so this card is the thinnest, on purpose.

next decision: 2026-10-07 The next monthly reserves report (September's gold) — does the 21-month streak survive a g
house base case: The streak continues regardless of the gold price; the fix stays managed in small steps. The two are separate books.
◆ mixed1 their way · 1 against · 2 scored
The yuan (USD/CNY) — lower is stronger yuan
line 6.78 · -0.06 · marked
6.73-0.07 / 60d→ their way
US real yields — the cost of holding gold instead of Treasuries2.42%+0.16% / 60d← against
Gold — their footprint, not a goal4,429$+351.73$ / 60dtheir tool — not scored
Primary dealers & bank balance sheets bloc

The big banks that must bid at every Treasury auction and hold what they buy. They break when they are already full and get forced to take more — which is exactly what happened on August 18th, the day before Treasury doubled its buybacks.

next decision: 2026-09-10 The next coupon auctions (3Y/10Y/30Y, week of 09-08) into a warehouse that was at the 95th
house base case: They sell what they can into the 09-10 buyback (the offered volumes already show this) and take the auctions; the read stays normal unless the 30Y retests 5.34
▼ moving their way2 their way · 0 against · 3 scored
Funding stress — repo rate minus the Fed's floor (SOFR − IORB)0.01pp+0.00pp / 30d= flat
Settlement fails — the plumbing breaking76.66$bn-6.84$bn / 60d→ their way
Long bonds sitting in their warehouse (11–21y)65$bn-12.39$bn / 60d→ their way
Money funds & stablecoin issuers — the bill bid bloc

Money-market funds and stablecoin issuers — the buyers Treasury's bill-heavy borrowing is designed for. Their cushion at the Fed (the RRP) is empty, so every new bill is now paid for out of bank reserves. They break when bills get scarce or a stablecoin gets redeemed.

next decision: 2026-11-02 The Q4 financing estimate — bill share of net new borrowing — after September's bill cuts
house base case: The drain: RRP stays near zero, reserves fall with the TGA toward the stated late-October peak, and SOFR minus IORB widens into it.
▼ moving their way1 their way · 0 against · 2 scored
Bill yield above the Fed's floor (3-month bill − IORB)0.24pp+0.00pp / 30d= flat
Bills outstanding — what they are asked to absorb7,248$bn+557.40$bn / 60d→ their way
Cash parked at the Fed (RRP) — the cushion, shown not scored
line 2.25$bn · -1.57 · marked
0.68$bn-0.97$bn / 30dtheir tool — not scored
Corporate buyback desks bloc

Companies buying back their own stock — the biggest single buyer of US equities. The bid runs on cheap debt and fat profits and switches off around earnings by rule, not by mood.

next decision: 2026-10-12 The Q3 earnings blackout wave (mid-October) — the bid switches off by rule; then the Q3 bu
house base case: The bid returns after blackout at similar size — spreads are near their lows and profits are up 20% (Warsh). The blackout itself is the only predictable absence
◆ mixed2 their way · 2 against · 4 scored
Cost of borrowing — investment-grade spread0.81%+0.06% / 60d← against
Cost of borrowing — BBB spread1%+0.06% / 60d← against
Stocks — S&P 5007,719+181.17 / 60d→ their way
Corporate profits (quarterly)4,302$bn+510.21$bn / 180d→ their way
Leveraged funds — the basis trade, CTAs, vol-control bloc

Hedge funds running the Treasury basis trade, trend-followers, and volatility-targeting funds. None of them decide anything — repo cost, margin and volatility decide for them — which is why when something breaks, they are the first footprint.

next decision: 2026-09-16 The FOMC as a volatility event (and the 09-11 CPI before it) — the first test of the basis
house base case: No unwind absent a repo-tail or margin shock; the OFR names those two triggers and neither is in the served data today. If one lands, the footprint arrives in d
▼ moving their way1 their way · 0 against · 2 scored
Repo tail — 99th-percentile SOFR above the median0.08pp+0.00pp / 30d= flat
Volatility — VIX14.32-2.18 / 30d→ their way
Leveraged short in 10y futures (% of open interest) — shown, not scored-39.09%-1.56% / 60dtheir tool — not scored

The full cards

policymaker Kevin Warsh — the full card: the decision in front of them, their playbook, what they have done, what they cannot do
policymaker
Chair, Board of Governors of the Federal Reserve — in office since 2026-05-21 (100th day was 2026-08-28, by his own count)
next: 2026-09-16 FOMC — hold 3.50–3.75% or hike 25bp

Runs the Fed, so he sets the short-term interest rate. He wants inflation back down to 2% and has said that is the job. His nightmare is people deciding inflation is here to stay, because then the rate has to go much higher to prove otherwise.

A new chair who has refused to publish a reaction function, told the market not to trade the Fed, and named price stability the predominant focus with PCE at 3.7% YoY / 4.1% 6m — thirteen days before an FOMC the market prices at a 55–66% hike.

1 The decision in front of them

2026-09-16 · FOMC — hold 3.50–3.75% or hike 25bp
The options on the table
  • Hike 25bp with no path stated — consistent with 'we have work to do' and the 07-29 dissents
  • Hold, framed on principle 1 (trends over single prints) — only if the escape hatch has visibly fired
  • A cut is not on the table on anything he has said
What decides it — live
CPIAUCSL 332.81 2026-07-01 UNRATE 4.1 2026-08-01 T5YIFR 2.33 2026-09-04 PCEPI 131.66 2026-07-01
House base case house analysis

Hike 25bp, no guidance about the next one. Jackson Hole moved the September distribution 21.5pp toward a hike; a hold after that reads as a retreat unless the payroll before the meeting prints U3 at least 0.2pp above its prior vintage (Rosenberg's reading of his bar).

What would prove that wrong

A hold with T5YIFR flat and no escape-hatch print — then the binding constraint was the labor market, not prices, and the 'quieter Fed' is quieter than the tape assumed.

2 Where the data sits against their lines

The scorecard — is it moving their way?

Inflation — PCE, yearly change
line 2% · +1.70 · breached
3.7%-0.10% / 90d→ their way
Core inflation — PCE ex food & energy, yearly3.34%+0.01% / 90d← against
Where markets think inflation lands (5y5y forward)2.33%+0.12% / 60d← against
Unemployment — his escape hatch, not a goal4.1%-0.20% / 90dtheir tool — not scored
The fed funds rate — his tool3.63%+0.00% / 60dtheir tool — not scored

Levels — stated, or revealed by acting

levelserieslevelnowdistancestate
2% PCE, 12-month — the objective he called firm and fixedstated Warsh · JH 2026-08-28PCEPI23.7+1.70BREACHED
Hike bar, September: hikes unless U3 prints ≥0.2pp above prior vintage or core comes 0.1 soft — ROSENBERG'S reading, not Warsh's wordsattributed Rosenberg (attributed) · tracker rosenberg_sep_hike; measure of 'core' undeclared in the surviving sourceUNRATE
'Hard pressed to describe broad financial conditions as restrictive' — a judgment, no numberstated Warsh · JH 2026-08-28
The rate against the target's own measure
effective fed funds % 3.63PCE YoY % 3.70core PCE YoY % 3.34
7.044.331.63pce target2025-10-122026-03-292026-09-031
  1. 1 2026-05-21 Took office (derived: '100th day' on 08-28)
The thing he says he fears — expectations
5y5y forward breakeven % 2.3310y breakeven % 2.35
2.562.261.96pce target2022-09-092024-09-132026-09-0412345
  1. 1 2026-05-21 Took office (derived: '100th day' on 08-28)
  2. 2 2026-07-14 Testified to committee, same morning as June CPI
  3. 3 2026-07-29 FOMC: hold 3.50–3.75, vote 9–3, Hammack/Kashkari
  4. 4 2026-08-19 Minutes released: 'many participants' see tighte
  5. 5 2026-08-28 Jackson Hole 'In Our Time': no reaction function

3 Their playbook — if this, then that

ifthenhow we would see itbasis
Core inflation re-accelerates or medium-term expectations (5y5y) break higher
BREACHED line 2 · now 3.7
Hike 25bp; refuse to state a pathDFF 3.63 2026-09-03 T5YIFR 2.33 2026-09-04statedJH 2026-08-28 'we have work to do'; 07-29 dissents
A weak payroll lands before the meeting (U3 up 0.2pp or more vs prior vintage)Hold, on principle 1 — trends over prints; hawks dissent againUNRATE 4.1 2026-08-01 DFF 3.63 2026-09-03attributedRosenberg's reading of his bar (tracker rosenberg_sep_hike); JH principle 1
The long end breaks disorderly (30Y through Treasury's lines)Nothing on the balance sheet — leave it to Treasury; at most repo/SRF toolsDGS30 5.25 2026-09-03 RPONTSYD 0 2026-09-04statedJH principle 5: unconventional policy 'sparingly, if at all'
Funding stress — SOFR sustained above IORBThe SRF is the ceiling; reserve-management bill purchases continueSOFR 3.66 2026-09-03 IORB 3.65 2026-09-07 RPONTSYD 0 2026-09-04 WALCL 6,737,204 2026-09-02stated07-29 directive (minutes)
Markets go back to trading the Fed's next moveLess communication, not more — the 'hall of mirrors' doctrineTHREEFYTP10 0.88 2026-08-28statedJH 2026-08-28

If the fear hits house analysis

If expectations move (T5YIFR/T10YIE break higher with oil), expect a hike delivered WITHOUT guidance about the next one, and a refusal to touch the balance sheet for the long end — he has said the short rate is the tool. Disconfirmer: a hike paired with a stated path, or any long-end purchase language, would mean the 'quieter Fed' doctrine did not survive contact.

4 What they have done

datewhat they did
2026-05-21Took office (derived: '100th day' on 08-28)JH 2026-08-28
2026-07-14Testified to committee, same morning as June CPIconfig/whatifs.yaml
2026-07-29FOMC: hold 3.50–3.75, vote 9–3, Hammack/Kashkari/Logan for +25bpdocs/evidence/FOMC_2026-07-29_MINUTES.md
2026-08-19Minutes released: 'many participants' see tightening likely if inflation does not decline; balance-sheet composition on the tabledocs/evidence/FOMC_2026-07-29_MINUTES.md
2026-08-28Jackson Hole 'In Our Time': no reaction function, price stability predominant; Sept hike odds 34→56% on the daydata/panel/2026-08-28-WARSH-JACKSON-HOLE-PREPARED-TEXT.txt; JACKSON_HOLE_2026_G1_SCORING

5 What they cannot or will not do

  • stated No forward guidance, no published reaction function — reversing it now is a visible defeatJH 2026-08-28
  • stated No balance-sheet support for the long end — every long-end tool is therefore Treasury'sJH principle 5
  • inferred Cannot be seen retreating after moving the market 21.5pp in one speechJACKSON_HOLE_2026_G1_SCORING section 1
  • stated '65 months' — he put the inflation record on the Fed's own accountJH 2026-08-28
Supporting material — what they want, what they fear, the levers, what they watch, their words, the calls they own

What they want

  • stated Underlying inflation moving to 2% 'clearly and at sufficient speed' — 'otherwise, we have work to do'JH 2026-08-28
  • stated A quieter Fed: no forward guidance in normal times, no published reaction function, 'a discipline, not a decision'JH 2026-08-28
  • stated Short rates as the predominant tool; unconventional policy 'sparingly, if at all'JH 2026-08-28 principle 5
  • stated Markets that price the economy, not the Fed — the 'hall of mirrors' brokenJH 2026-08-28
  • stated Money back in monetary policy — central-bank AND bank-created money watchedJH 2026-08-28 principle 6

What they fear

  • stated Inflation expectations unanchoring — 'they tend to look strong and durable until they don't'JH 2026-08-28
  • stated Policy set on stale data or a single print — 'yesterday's news mistaken for what is happening right now'JH 2026-08-28 principle 1
  • stated Being the chair who let the '65 months' run to 70 — the responsibility 'sits squarely with the central bank'JH 2026-08-28
  • inferred Hiking into a Treasury market Treasury is actively supporting — the Fed 'at odds' with TreasuryCNBC analyst roundup 2026-08-31 (search summary); QRA_BASELINE §1d; FOMC minutes 07-29 on Treasury-market price volatility
  • inferred A credibility test failed in public: expectations moved 21.5pp on his speech; a hold after that reads as a retreatJACKSON_HOLE_2026_G1_SCORING §1; rosenberg_sep_hike resolution rule

Levers · footprint

  • stated Target range (3.50–3.75% at the 07-29 hold)
    DFF 3.63 2026-09-03 IORB 3.65 2026-09-07
    07-29 hold 9–3, three dissents for +25bp; 'many participants' conditional on inflation not declining (minutes)
  • stated Maturity composition of SOMA — the task force's open question
    WALCL 6,737,204 2026-09-02 TREAST 4,552,347 2026-09-02 WSHOMCB 1,913,585 2026-09-02
    Minutes 07-29 flag 'the appropriate maturity composition' as a topic; a shorter portfolio ADDS long-end supply while Treasury retires it
  • stated Reserve-management purchases (bills, ≤3y if needed) — continuing, no runoff language
    WALCL 6,737,204 2026-09-02 WRESBAL 2,894,531 2026-09-02
    Directive in the 07-29 minutes; Wang's QT-restart call is the falsifier
  • stated Standing Repo Facility — the ceiling on funding stress
    RPONTSYD 0 2026-09-04 SOFR 3.66 2026-09-03 IORB 3.65 2026-09-07
    Facility exists; usage nonzero on ~half of sessions at nominal size (QRA_BASELINE served baseline)
  • inferred Withholding guidance — a lever by omission; the term premium is where it lands
    THREEFYTP10 0.88 2026-08-28 DGS30 5.25 2026-09-03
    Wang 08-15: term premium = compensation for not knowing the reaction function; Dale 08-25 on air: 'please give us a reaction function'
  • stated Six meetings a year (floated, not decided)
    no series — a document, a rule, or an announcement
    Minutes 07-29: 'would allow more information to accumulate'

What they watch → what we collect

PCE 12m and 6m change — 'a firm, fixed target' at 2%JH 2026-08-28PCEPI3.7 YoY %85 n=469, 39.0y2026-07-01
PCEPILFE3.34 YoY %82 n=469, 39.0y2026-07-01
Share of the 199 PCE components rising >3% (54% 12m / 49% 6m vs 32% pre-pandemic)not collected — BEA component detail not collected — a build candidate; the only number in the speech we cannot reproduce
Medium-term inflation expectations and swaps compensation — 'well anchored … must be closely minded'JH 2026-08-28T5YIFR2.33 57 n=5924, 23.7y2026-09-04
T10YIE2.35 73 n=5924, 23.7y2026-09-04
Level and change in asset prices across sectors; 'market internals'JH 2026-08-28SP5007,719 100 n=2555, 10.2y2026-09-04
VIXCLS14.32 27 n=9266, 36.7y2026-09-03
Prices and trading volumes of Treasury securitiesJH 2026-08-28 (volumes: auction_internals, not a series)DGS104.77 59 n=10039, 40.1y2026-09-03
DGS305.25 59 n=10034, 40.1y2026-09-03
Foreign-exchange value of the dollarJH 2026-08-28DTWEXBGS118.75 79 n=5179, 20.7y2026-08-28
Cost and availability of credit — spreads 'near the low ends', C&I standards 'on the easier end'JH 2026-08-28BAMLC0A0CM0.81 35 n=827, 3.2y · short window2026-09-03
BAMLH0A0HYM22.65 4 n=828, 3.2y · short window2026-09-03
DRTSCILM0 51 n=146, 36.2y2026-07-01
BUSLOANS2,899 99 n=481, 40.0y2026-07-01
A broad set of commodities — 'the recent rise … bears watching'JH 2026-08-28DCOILWTICO91.48 89 n=10099, 40.1y2026-09-01
CPER39.95 100 n=3722, 14.8y2026-09-04
Four-week claims — 'an empirically robust real-time indicator'; unemployment 4.1%JH 2026-08-28ICSA206,000 2 n=2094, 40.1y2026-08-29
UNRATE4.1 17 n=479, 39.9y2026-08-01
Capex growth and its second derivative; PDFP; S&P profits +20%JH 2026-08-28PNFIC13,883 100 n=78, 19.2y2026-04-01
CP4,302 100 n=160, 39.8y2026-04-01
Money — central-bank and bank-createdJH 2026-08-28 principle 6M2SL23,218 100 n=481, 40.0y2026-07-01
TOTBKCR19,830 100 n=2093, 40.1y2026-08-26

In their words

2026-08-28 primary

“We should not indulge a regime in which market participants are looking primarily to the Fed for their next trade.”

Jackson Hole prepared text
2026-08-28 primary

“Here is my standard: We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.”

Jackson Hole prepared text
2026-08-28 primary

“The thing about market measures of inflation expectations in economic history is that they tend to look strong and durable until they don't.”

Jackson Hole prepared text
2026-08-28 primary

“I stand here today committed to a discipline, not to a decision.”

Jackson Hole prepared text
2026-08-28 primary

“Certain sectors—like housing and agriculture—are showing strains. But, on balance, I would be hard pressed to describe broad financial conditions as restrictive.”

Jackson Hole prepared text

Dated calls they own

DUE SOON The 2026 rise in the 10y is supply/policy-priced REAL rate, not growth or inflation repricing: through the Sept FOMC (2026-09-16) the 20-ses 2026-09-16 · 9d
DUE SOON Warsh hikes at the 2026-09-16 FOMC, absent a very weak payroll print (his stated bar: roughly +0.2 on U3 and 0.1 on core). 2026-09-16 · 9d
open Under Warsh, the Fed restarts/extends balance-sheet shrinkage (QT) even after the Dec-2025 bill-buying expansion, leaning on heavier bill is 2026-12-31
open The next Fed policy-rate change is a HIKE (stated confidence '100%'; 'must be coming'; >=6 more months of intensified tightening). 2026-12-31
open The bond market forces a Fed-Treasury merger into explicit yield curve control - the 'Fedsury' - probably this year, probably in the lame-du 2027-01-31

On the calendar

2026-09-11 August CPI print — 8:30 ET
2026-09-16 FOMC rate statement + press conference (Sept 15-16 meeting) — checkpoint for dale_1998_correction, howell_2026_next_move_hike, read_20260818_real_led_supply
policymaker Scott Bessent — the full card: the decision in front of them, their playbook, what they have done, what they cannot do
policymaker
Secretary of the Treasury
next: 2026-09-10 First enlarged long-end buyback (10Y–20Y, cap at least $4bn) — then the 11-04 QR

Runs the Treasury, so he has to borrow about $700bn a quarter without long-term yields blowing up. He wants the 30-year yield lower and has already spent two tools on it (a joint yen operation, doubled bond buybacks). His nightmare is a bond auction nobody wants to buy.

The one principal who has already acted twice in five weeks — a joint yen intervention and an intra-quarter doubling of long-end buybacks — and narrated the next escalation on television the day after; every lever he holds is a lever the Fed's chair has said he will not pull.

1 The decision in front of them

2026-09-10 · First enlarged long-end buyback (10Y–20Y, cap at least $4bn) — then the 11-04 QRA: coupon sizes, TGA path, buyback renewal
The options on the table
  • 09-10: fill at the cap on rising offers (the put-like signature) vs fill below cap (price-disciplined) vs offers fall short (demand-limited)
  • 11-04: keep coupons flat and renew/enlarge buybacks (base) · cut long coupon issuance ('changes' wording permits it) · raise coupons (contradicts everything since 08-05)
What decides it — live
DGS30 5.25 2026-09-03 DGS10 4.77 2026-09-03 WTREGEN 967,935 2026-09-02 BUYBACK_LS_10Y20Y_OFFERED_BN 7.4 2026-08-11
House base case house analysis

Renew and enlarge the buybacks at 11-04, keep coupons flat, stay bill-heavy; escalate the cap first if the 30Y retests 5.34. He has already narrated the next step ('could be more than $4 billion').

What would prove that wrong

A coupon-size INCREASE at 11-04, or the 30Y through 5.50 for a sustained stretch with no new action — then there is no ceiling and the repression read is wrong.

2 Where the data sits against their lines

The scorecard — is it moving their way?

30-year yield
line 5.34% · -0.09 · clear
5.25%+0.07% / 30d← against
10-year yield
line 4.8% · -0.03 · clear
4.77%+0.14% / 30d← against
Term premium — what buybacks are aimed at0.88%+0.20% / 60d← against
Treasury's cash balance vs its stated path
line 950$bn · +17.93 · marked
967.93$bn+57.16$bn / 30d→ their way
The yen (USD/JPY) — the allied front156-1.80 / 30d→ their way

Levels — stated, or revealed by acting

levelserieslevelnowdistancestate
30Y 5.34% intraday (08-18, 19-year high) — the level he acted the next morningrevealed revealed by the 08-19 action · QRA_BASELINE §1dDGS305.345.25-0.09clear
30Y > 5.50% sustained with NO new action — the house falsifier for 'there is a ceiling'inferred house (tracker read_20260820_long_end_repression) · QRA_BASELINE §2bDGS305.55.25-0.25clear
'Bessent is never going to let the 10y go over 4.7–4.8' — GROMEN's line, fails on five closes ≥4.80 with no actionattributed Gromen (attributed) · gromen profile framework 2, promoted 2026-08-21DGS104.84.77-0.03clear
TGA ~$950bn assumed at end-Septemberstated Treasury sb0590 · QRA_BASELINE stated cash-balance pathWTREGEN950967.93+17.93marked
TGA could peak ~$1.05tn (±$50bn) late Octoberstated Treasury sb0590 · QRA_BASELINE stated cash-balance pathWTREGEN1050967.93-82.06marked
≥$4bn per long-end operation from 09-09 — 'could be more than the $4 billion'stated Treasury sb0607 / Bessent CNBC 08-20 · QRA_BASELINE §1dBUYBACK_LS_10Y20Y_ACCEPTED_BN42-2.00marked
The long end — where he acted, and where the house says he must act again
30Y % 5.2510Y % 4.77
5.654.583.51thirty actedthirty falsifiergromen ceiling2023-09-082025-03-142026-09-031234567
  1. 1 2026-07-31 US leg of the joint yen intervention (NY Fed sol
  2. 2 2026-08-03 Confirmed the operation; 'will not hesitate to p
  3. 3 2026-08-05 Q3 QRA: $125bn refunding, coupons unchanged, 'in
  4. 4 2026-08-19 sb0607: long-end buyback cap ≥ doubled to $4bn f
  5. 5 2026-08-20 CNBC: 'could be more than the $4 billion per iss
  6. 6 2026-08-24 Reported (sources): could tap the ~$1tn TGA to f
  7. 7 2026-08-30 Met BoJ Governor Ueda; US 'conveyed strong suppo
The cash balance against Treasury's own stated path
1,110.30673.12235.95tga end septga peak2023-09-062025-03-122026-09-021234567
  1. 1 2026-07-31 US leg of the joint yen intervention (NY Fed sol
  2. 2 2026-08-03 Confirmed the operation; 'will not hesitate to p
  3. 3 2026-08-05 Q3 QRA: $125bn refunding, coupons unchanged, 'in
  4. 4 2026-08-19 sb0607: long-end buyback cap ≥ doubled to $4bn f
  5. 5 2026-08-20 CNBC: 'could be more than the $4 billion per iss
  6. 6 2026-08-24 Reported (sources): could tap the ~$1tn TGA to f
  7. 7 2026-08-30 Met BoJ Governor Ueda; US 'conveyed strong suppo

3 Their playbook — if this, then that

ifthenhow we would see itbasis
30Y back above 5.34 into a capacity-exhausted auction
clear line 5.34 · now 5.25
Raise the per-operation cap again or run an off-schedule operationDGS30 5.25 2026-09-03 BUYBACK_LS_10Y20Y_ACCEPTED_BN 2 2026-08-11statedsb0607 08-19; CNBC 08-20 'could be more than the $4 billion'
Buybacks fail to hold the long endCut long coupon issuance at the QRA, shift the mix further to billsFISCAL_MKT_BILLS_BN 7,248 2026-08-31 DGS30 5.25 2026-09-03revealed'increases' to 'changes' 08-05; 2023 precedent as the 10Y neared 5%
Still failing
clear line 5.5 · now 5.25
Draw the TGA to fund buybacks (reported); the SLR-exemption askWTREGEN 967,935 2026-09-02inferredCNBC 08-24 (sources); QRA_BASELINE section 2b escalation #4
USD/JPY retakes 163A second joint yen operation — threatened before executedMD_USDJPY 156 2026-09-06 WLRRAFOIAL 357,217 2026-09-02stated08-03 'will not hesitate to participate in further joint intervention'
The Fed hikes on 09-16No public criticism; the term-premium tools continueTHREEFYTP10 0.88 2026-08-28 DGS30 5.25 2026-09-03inferredthe President's stated posture 08-31

If the fear hits house analysis

If the 30Y clears 5.34 again into a capacity-exhausted auction, expect the ladder in the order he has already climbed it: a bigger cap or an off-schedule operation first (he has said so), then an issuance-mix cut to long coupons at the 11-04 QRA, then the SLR exemption ask — each one a Treasury tool because the Fed's chair has ruled out the balance sheet. Disconfirmer: the 30Y through 5.50 for a sustained stretch with none of those — then there is no ceiling and the repression read is wrong (§2b).

4 What they have done

datewhat they did
2026-07-31US leg of the joint yen intervention (NY Fed sold ~€13bn for yen per Wang); USD/JPY 163.44 → 157.46check 2026-08-12 usdjpy-intervention-retrace; Wang session 01
2026-08-03Confirmed the operation; 'will not hesitate to participate in further joint intervention'CNBC/Al Jazeera 08-03 (search summary — verify verbatim)
2026-08-05Q3 QRA: $125bn refunding, coupons unchanged, 'increases' → 'changes', TGA path $950bn/$1.05tndocs/evidence/QRA_BASELINE.md
2026-08-19sb0607: long-end buyback cap ≥ doubled to $4bn from 09-09 — announced ~4h before his own 20Y auctiondocs/evidence/QRA_BASELINE.md §1d
2026-08-20CNBC: 'could be more than the $4 billion per issue'; 'part of it is signaling'; yields rose anywayQRA_BASELINE §1d reactions (via Reuters)
2026-08-24Reported (sources): could tap the ~$1tn TGA to fund buybacksCNBC 2026-08-24 (search summary; page 403 to this fetcher)
2026-08-30Met BoJ Governor Ueda; US 'conveyed strong support for decisive measures to correct the weak yen'Japan Times 09-02 (search summary; page paywalled)

5 What they cannot or will not do

  • revealed Cannot raise coupons without contradicting the 'at least the next several quarters' guidance he kept on 08-05QRA sb0590
  • stated No Fed balance sheet to lean on — the chair ruled it outWarsh JH principle 5
  • stated The cash path ($950bn / $1.05tn) is stated publicly; missing it is visibleQRA sb0590
  • stated About $739bn to borrow this quarter regardless of what yields dosb0584 financing estimate (verified)
Supporting material — what they want, what they fear, the levers, what they watch, their words, the calls they own

What they want

  • stated Long yields that 'reflect the underlying fundamentals' — lower — and liquidity in the 30-yearCNBC 2026-08-20 via Reuters (QRA_BASELINE §1d reactions)
  • revealed Finance ~$739bn/quarter without a coupon step-up: 'at least the next several quarters' guidance kept, bills as the swingQRA sb0590 2026-08-05; sb0584 financing estimate
  • stated Allies financed without selling Treasuries — 'The Trump Administration delivers for America's trusted partners'Treasury statement on the 07-31 joint intervention (CNBC/Al Jazeera 08-03, search summary)
  • attributed A captive front-end buyer: stablecoin issuers under GENIUS holding bills 1:1Gromen framework 7 ('globally repressible balance sheet'); GENIUS Act reserve rule
  • stated Fiscal concern answered by spending cuts, not by the marketCNBC 2026-08-20 (search summary)

What they fear

  • revealed A disorderly long-end repricing — he acted the morning after the 30Y printed 5.34% intraday, a 19-year high, through a $2bn operation that failed to arrest itQRA_BASELINE §1d 'the setup it responded to'
  • stated Japan selling Treasuries to defend the yen alone — the US joined the intervention to prevent exactly thatCNBC 2026-08-03 (search summary): 'avoid a scenario in which Japan dumps U.S. Treasurys'
  • revealed An auction into exhausted dealer balance sheets — the 20Y on 08-19 was `capacity_exhausted`, inventory at the 95th percentileserved auction_internals 2026-08-18 (QRA_BASELINE §1d)
  • inferred The Fed hiking into his buybacks — the 'at odds' problem; his tools work on term premium, a hike works on the front end, and the curve is where they meetCNBC 08-31 roundup (search summary); Dale 08-31 'Fedsury' capture
  • inferred The intervention being read as a put — the 'unfalsifiable version' the §2b entry warns about; if buybacks fill at cap with rising offers, the market has learned to sell him paperderive/buyback_ops.py three-state mechanism; QRA_BASELINE §2b

Levers · footprint

  • revealed Bill share of marketable debt — the swing between duration supply and reserve drain
    FISCAL_MKT_BILLS_BN 7,248 2026-08-31 FISCAL_MKT_TOTAL_BN 31,828 2026-08-31
    2023 bill shift as the 10Y approached 5%; Q3-26 financing 55% bills (sb0584 + TBAC)
  • stated Coupon auction sizes and the guidance sentence — a document, not a series
    no series — a document, a rule, or an announcement
    'increases' → 'changes' at the 08-05 QRA; opens the door to CUTTING long issuance (Wang)
  • stated Long-end liquidity-support buybacks — cap doubled to ≥$4bn from 09-09
    BUYBACK_LS_10Y20Y_ACCEPTED_BN 2 2026-08-11 BUYBACK_LS_20Y30Y_ACCEPTED_BN 2 2026-08-18 BUYBACK_LS_10Y20Y_OFFERED_BN 7.4 2026-08-11 BUYBACK_LS_20Y30Y_OFFERED_BN 19.87 2026-08-18
    sb0607 2026-08-19; 23 of 25 long-bucket ops since Nov-25 filled at cap; two rejected on price (03-19, 11-20)
  • stated The cash balance — $950bn end-Sep / $1.05tn late-Oct stated; 'could tap' it for buybacks (reported)
    WTREGEN 967,935 2026-09-02
    QRA sb0590 cash-balance path; CNBC 2026-08-24 (sources, not Bessent verbatim)
  • revealed Exchange Stabilization Fund / joint intervention — first US yen-buying since 1998
    MD_USDJPY 156 2026-09-06 DEXJPUS 159.97 2026-08-28 WLRRAFOIAL 357,217 2026-09-02 H41RESPPALGTRFNWW 0 2026-09-02
    07-31 joint op; US leg ~a sixth of the size (check 2026-08-12); 'will not hesitate' 08-03
  • inferred SLR exemption for Treasuries — the named escalation; regulatory, no series
    no series — a document, a rule, or an announcement
    §2b confirm #4; eSLR rule effective 2026-04-01 (tracker 'SLR reduction', VERIFIED); SIFMA pushing a permanent exemption
  • stated Television — 'part of it is signaling here'
    DGS30 5.25 2026-09-03
    CNBC 08-20; Thursday gave back half of Wednesday's rally (§1d)

What they watch → what we collect

30Y and 10Y yields; 30Y liquidity 'is weak'CNBC 2026-08-20 (search summary)DGS305.25 59 n=10034, 40.1y2026-09-03
DGS104.77 59 n=10039, 40.1y2026-09-03
Auction takedown by dealers / capacitynot collected — served as auction_internals.absorption (a gauge), not a series — cite the gauge
Swap spreads — the supply-indigestion tell Wang says has been quietnot collected — derived.swap_spread from DTCC; DTCC retention is rolling 2y, the git seed is the only history
The cash balance against the stated pathQRA sb0590WTREGEN967.93 $bn96 n=1238, 23.7y2026-09-02
USD/JPY — the allied front07-31 joint interventionMD_USDJPY156 94 n=4971, 18.9y2026-09-06
Term premium — what his buybacks are aimed atinferred from the buyback rationaleTHREEFYTP100.88 57 n=9151, 36.7y2026-08-28
Bills outstanding and the bill shareMonday financing estimatesFISCAL_MKT_BILLS_BN7,248 100 n=308, 25.6y2026-08-31

In their words

2026-08-20 secondary

“We're going to increase the size of the buyback. I would note that it could be more than the $4 billion per issue.”

CNBC via Reuters — QRA_BASELINE §1d; verify against the CNBC video before citing as verbatim
2026-08-20 secondary

“Part of it is signaling here, and to show that we believe that the yields don't reflect the underlying fundamentals.”

CNBC via Reuters — QRA_BASELINE §1d
2026-08-20 secondary

“All we're trying to do is get people to focus on the fundamentals and not trade the headlines during a quiet period in a thin market.”

CNBC 2026-08-20 (search summary; page 403 to this fetcher)
2026-08-19 primary

“This increase in buyback operation sizes reflects Treasury's desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants.”

Treasury press release sb0607 (verbatim, fetched 2026-08-21)
2026-08-03 secondary

“The Trump Administration delivers for America's trusted partners.”

Treasury statement on the joint intervention (CNBC/Al Jazeera 08-03, search summary)

Dated calls they own

open Treasury's stated TGA rebuild to ~$950bn at end-September and a projected ~$1.05tn (±$50bn) peak in late October drains bank reserves roughl 2026-11-04
open Treasury will act to arrest disorderly long-end repricing and will escalate the tool as the strain level rises: the 2026-08-19 doubling of t 2026-11-04
open The 2026-11-04 refunding announcement, not the buyback programme, is the lever that brings the 10y down (the November-2023 analogue). 2026-12-04
open The bond market forces a Fed-Treasury merger into explicit yield curve control - the 'Fedsury' - probably this year, probably in the lame-du 2027-01-31
standing The yield backup is a Fed-expectation reset under a new chair, not a fiscal or term-premium story: breakevens are flat and the move is in th standing

On the calendar

2026-09-10 Treasury long-end buyback op, 10Y-20Y — FIRST at the enlarged cap (>= $4bn)
2026-09-24 Treasury long-end buyback op, 20Y-30Y (>= $4bn)
2026-10-01 Treasury long-end buyback op, 10Y-20Y (>= $4bn)
2026-10-08 Treasury long-end buyback op, 20Y-30Y (>= $4bn)
2026-10-15 Treasury long-end buyback op, 10Y-20Y (>= $4bn)
2026-10-27 Treasury long-end buyback op, 20Y-30Y (>= $4bn)
2026-11-02 Treasury QRA financing estimates (Q4) — 3:00pm ET; carries total borrowing + bill share of net new financing
2026-11-04 Treasury QRA refunding announcement (Q4) — 8:30am ET; TGA target, forward-guidance sentence, coupon table
policymaker The White House — the full card: the decision in front of them, their playbook, what they have done, what they cannot do
policymaker
The President — fiscal, trade, and appointment power; the principal every other principal answers to
next: 2026-09-16 How to react if the Fed hikes — and the fixed date behind everything, the 11-03

Wants lower rates, a strong stock market and cheap gasoline by the midterm election on November 3rd, and has said he will not lean on the Fed chair over a hike. His only direct levers are tariffs, spending, the oil reserve, and what he says out loud.

Wants lower rates and says so, has said he will not lean on Warsh over a hike, authorised the first US yen-buying since 1998, and faces a midterm on 2026-11-03 — the one hard date on this page that no data release can move.

1 The decision in front of them

2026-09-16 · How to react if the Fed hikes — and the fixed date behind everything, the 11-03 midterm
The options on the table
  • Stay quiet on the Fed ('he'll do what he has to do'); push on Treasury, tariffs and energy instead
  • Demand cuts publicly after a hike — reopens the Fed-independence channel
What decides it — live
DFF 3.63 2026-09-03 SP500 7,719 2026-09-04 MORTGAGE30US 6.71 2026-09-03 DCOILWTICO 91.48 2026-09-01
House base case house analysis

Quiet on the Fed, loud everywhere else. He pre-empted the fight on 08-31, and the tools that work before November are Treasury's and the oil reserve's.

What would prove that wrong

A public demand for a cut after a hike, or a personnel move at the Fed before 11-03.

2 Where the data sits against their lines

The scorecard — is it moving their way?

30-year mortgage rate6.71%+0.28% / 60d← against
The fed funds rate3.63%+0.00% / 60d= flat
Stocks — S&P 5007,719+181.17 / 60d→ their way
Oil — WTI91.48$+21.75$ / 60d← against
Unemployment4.1%-0.20% / 90d→ their way

Levels — stated, or revealed by acting

levelserieslevelnowdistancestate
2026-11-03 — the hard date; no number attaches to itstated the calendar · US election calendar
What he says is too high
30y mortgage % 6.71fed funds % 3.63
8.125.713.292023-09-072025-03-132026-09-03123
  1. 1 2026-07-31 Authorised the US leg of the joint yen intervent
  2. 2 2026-08-19 'Bemoans Fed interest rate policy, says U.S. sho
  3. 3 2026-08-31 'I have a lot of respect for him and he'll do wh
The index into the midterm
8,002.696,429.924,857.152024-09-062025-09-052026-09-04123
  1. 1 2026-07-31 Authorised the US leg of the joint yen intervent
  2. 2 2026-08-19 'Bemoans Fed interest rate policy, says U.S. sho
  3. 3 2026-08-31 'I have a lot of respect for him and he'll do wh

3 Their playbook — if this, then that

ifthenhow we would see itbasis
The Fed hikes 09-16No public fight — 'I have a lot of respect for him'DFF 3.63 2026-09-03 EPU_US 944.1 2026-09-05statedPBS 2026-08-31
Gasoline spikes into the fallAn SPR release — which Dale argues cannot help, because the constraint is refiningEIA_SPR 286,604 2026-08-28 DCOILWTICO 91.48 2026-09-01revealed2022 releases; Dale 08-19 (attributed)
The long end breaksTreasury's tools, via Bessent — buybacks, mix, cashDGS30 5.25 2026-09-03inferredthe 08-19 timing
Stocks fall hard before NovemberTariff relief or announcements, and jawboningSP500 7,719 2026-09-04 EPU_US 944.1 2026-09-05inferredno primary source — a hypothesis

If the fear hits house analysis

If the long end breaks into the midterm window, expect the response to route through Treasury (buybacks, mix, TGA) and energy (SPR, Hormuz posture) — not through the Fed, which he has publicly declined to pressure. Disconfirmer: a public demand for a cut after a hike — that would reopen the Fed-independence channel and change every other principal's calculus.

4 What they have done

datewhat they did
2026-07-31Authorised the US leg of the joint yen intervention — first US yen-buying since 1998Treasury/CNBC 08-03 (search summary)
2026-08-19'Bemoans Fed interest rate policy, says U.S. should be paying much less' — same day as the buyback doublingCNBC 2026-08-19 (search summary)
2026-08-31'I have a lot of respect for him and he'll do what he has to do' on a possible hike; 'our interest rates are too high'PBS NewsHour (verbatim)

5 What they cannot or will not do

  • stated No direct rate leverthe law
  • stated Said he will not lean on Warsh over a hike — reversing that is a story in itselfPBS 2026-08-31
  • stated The calendar: 2026-11-03 does not movestatute
Supporting material — what they want, what they fear, the levers, what they watch, their words, the calls they own

What they want

  • stated Lower interest rates — 'I think our interest rates are too high'PBS 2026-08-31 (verbatim)
  • stated A lower interest bill — 'the U.S. should be paying much less'CNBC 2026-08-19 (search summary)
  • attributed Allies supported in a way that serves reindustrialisation — the yen intervention as trade policySetser 08-04 (profile); Treasury 08-03 statement
  • inferred Equities, gasoline and jobs in good order on 2026-11-03the midterm calendar; Dale 08-19 on the SPR and the midterms

What they fear

  • inferred A bond-market accident that becomes the midterm story — the Treasury acted on the 30Y the morning after a 19-year highQRA_BASELINE §1d timing
  • attributed Gasoline — Dale: 'an SPR release won't help the president before the midterms' because the constraint is refining, not crudeDale session 09 (08-19)
  • stated Being seen to lean on the Fed into a hike — he pre-empted it: 'he'll do what he has to do'PBS 2026-08-31

Levers · footprint

  • stated Tariffs — receipts and the inflation impulse the minutes attribute to them
    FISCAL_RCPT_M 334.01 2026-07-31 CPIAUCSL 332.81 2026-07-01
    Minutes 07-29: pass-through 'now largely complete'
  • stated Public pressure and appointments — no series; policy-uncertainty as the trace
    EPU_US 944.1 2026-09-05
    'wouldn't have chosen Warsh if he wanted rate hikes' (SA, search summary); 'won't try to talk him out of one' (PBS 08-31)
  • revealed Strategic Petroleum Reserve
    EIA_SPR 286,604 2026-08-28 DCOILWTICO 91.48 2026-09-01
    2022 releases; whatifs spr-flow-reversal
  • revealed Deficit and spending — receipts, outlays, net interest
    FISCAL_DFCT_M 432.31 2026-07-31 FISCAL_FN_NETINT_M 104.16 2026-07-31
    debt crossed $40tn 2026-08-19 (§1d)
  • revealed Iran / Hormuz — the energy shock the Fed names as an inflation source
    DCOILWTICO 91.48 2026-09-01 DCOILBRENTEU 96.02 2026-09-01
    chokepoints context block; minutes on Middle East energy

What they watch → what we collect

The indexinferredSP5007,719 100 n=2555, 10.2y2026-09-04
Gasoline at the pumpnot collected — no retail gasoline PRICE series collected — EIA_GASOLINE is stocks; a build candidate (EIA weekly retail price is free)
Mortgage rates and the funds ratePBS 08-31 'rates are too high'MORTGAGE30US6.71 57 n=2092, 40.1y2026-09-03
DFF3.63 52 n=14658, 40.1y2026-09-03
UnemploymentinferredUNRATE4.1 17 n=479, 39.9y2026-08-01
CrudeDale 08-19 (SPR/refining)DCOILWTICO91.48 89 n=10099, 40.1y2026-09-01

In their words

2026-08-31 primary

“I have a lot of respect for him and he'll do what he has to do.”

PBS NewsHour video, remarks on Warsh and possible hikes
2026-08-31 primary

“I think our interest rates are too high.”

PBS NewsHour video

Dated calls they own

no tracker entries owned

On the calendar

2026-11-03 US midterm elections — the hard date on the principals page; principals:white_house
policymaker Bank of Japan & Ministry of Finance — the full card: the decision in front of them, their playbook, what they have done, what they cannot do
policymaker
Governor Kazuo Ueda (BoJ) · Finance Minister Katayama (MoF) — the MoF orders intervention, the BoJ executes it and sets the rate
next: 2026-09-18 BoJ monetary policy meeting — hike or hold (about 99% priced for a hike, seconda

Japan's central bank and finance ministry. They spent tens of billions in late July to stop the yen collapsing past 163 and got it to 157; a third of that has already come back. A rate hike on September 18th is the only fix everyone agrees would hold — and it hurts their own bond market.

Intervened at 163.73 with the US alongside, got to 157.57, watched a third of it retrace inside eight sessions, and now faces a 09-17/18 meeting the market prices at ~99% for a hike — the one thing Wang says can actually hold the yen.

1 The decision in front of them

2026-09-18 · BoJ monetary policy meeting — hike or hold (about 99% priced for a hike, secondary source)
The options on the table
  • Hike — the only durable fix both Setser and Wang name; Ueda pre-announced the consideration on 09-01
  • Hold — chooses the JGB market over the yen; makes July's intervention theatre
What decides it — live
MD_USDJPY 156 2026-09-06 IRLTLT01JPM156N 2.67 2026-06-01 STALE WLRRAFOIAL 357,217 2026-09-02
House base case house analysis

Hike, and a second joint intervention threatened before the meeting if USD/JPY retakes 163 — the 08-03 language exists to make the threat credible without spending the dollars.

What would prove that wrong

A hold on 09-18 with the yen above 160.

2 Where the data sits against their lines

The scorecard — is it moving their way?

The yen (USD/JPY) — lower is stronger yen
line 163.73 · -7.73 · clear
156-1.80 / 30d→ their way
Their dollars parked at the New York Fed — the war chest357.22$bn+19.78$bn / 60d→ their way
Japanese 10-year yield — their tool, and their cost2.67% STALE+0.33% / 90dtheir tool — not scored

Levels — stated, or revealed by acting

levelserieslevelnowdistancestate
163.73 — the high the day before the joint op (07-30); the level they defendedrevealed revealed by the 07-30/31 action · CNBC 08-03 (search summary); check 2026-08-12 has 163.44 close 07-29MD_USDJPY163.73156-7.73clear
157.57 — where the joint op took it (07-31 close region)revealed market print, reported · CNBC 08-03 (search summary); check 2026-08-12: 157.46 (07-31), 157.22 low (08-02)MD_USDJPY157.57156-1.57marked
The yen — the line they held and how much of it came back
165.56152.29139.02intervened atpost intervention low2024-09-062025-09-052026-09-0612345
  1. 1 2026-07-30 Japan solo intervention, reported ¥8.45tn (~$52.
  2. 2 2026-07-31 Joint US–Japan yen-buying — first since 1998; →
  3. 3 2026-08-03 MoF and Treasury confirm; readiness for more
  4. 4 2026-08-30 Ueda met Bessent; US support for 'decisive measu
  5. 5 2026-09-01 Ueda signals an additional hike is under conside
Their dollars at the NY Fed — the pool Wang says funds the intervention
430.46354.71278.962023-09-062025-03-122026-09-0212345
  1. 1 2026-07-30 Japan solo intervention, reported ¥8.45tn (~$52.
  2. 2 2026-07-31 Joint US–Japan yen-buying — first since 1998; →
  3. 3 2026-08-03 MoF and Treasury confirm; readiness for more
  4. 4 2026-08-30 Ueda met Bessent; US support for 'decisive measu
  5. 5 2026-09-01 Ueda signals an additional hike is under conside

3 Their playbook — if this, then that

ifthenhow we would see itbasis
USD/JPY above 163 again
clear line 163.73 · now 156
Intervene — jointly if the US will; the pool at the NY Fed is drawn firstMD_USDJPY 156 2026-09-06 WLRRAFOIAL 357,217 2026-09-02revealed07-30/31; Wang 08-08 on the funding sequence
Intervention fails to holdHike the policy rateIRLTLT01JPM156N 2.67 2026-06-01 STALE MD_USDJPY 156 2026-09-06attributedWang 08-08 'a losing war unless you adjust interest rate differentials'; Setser 08-04; Ueda 09-01 signal
The JGB long end tantrumsSlow the hike path; long-end purchase operationsIRLTLT01JPM156N 2.67 2026-06-01 STALEinferredno JGB series collected — declared gap
Dollars needed at scaleForeign repo pool, then FIMA repo, then sell Treasuries — in that orderWLRRAFOIAL 357,217 2026-09-02 H41RESPPALGTRFNWW 0 2026-09-02 SWPT 132 2026-09-02attributeddollar_plumbing sequence; Wang 08-08

If the fear hits house analysis

If USD/JPY retakes 163 before 09-18, expect the hike to be delivered (it is the only durable lever both Setser and Wang name) and a second joint operation to be threatened before it is executed — the 08-03 language was written to make the threat credible. Disconfirmer: a hold on 09-18 with the yen above 160 — that would say the MoF/BoJ are choosing the JGB market over the yen, and the intervention was theatre.

4 What they have done

datewhat they did
2026-07-30Japan solo intervention, reported ¥8.45tn (~$52.8bn); 163.44 → 159.54check 2026-08-12 (reported sizes web-sourced)
2026-07-31Joint US–Japan yen-buying — first since 1998; → 157.46check 2026-08-12; CNBC 08-03
2026-08-03MoF and Treasury confirm; readiness for moreCNBC/Al Jazeera 08-03 (search summary)
2026-08-30Ueda met Bessent; US support for 'decisive measures'Japan Times 09-02 (search summary)
2026-09-01Ueda signals an additional hike is under consideration for the September MPMJapan Times / Bloomberg 09-02 (search summary)

5 What they cannot or will not do

  • attributed The rate differential is 'just too large' for intervention alone to holdWang 08-08
  • stated Cannot sell Treasuries to defend the yen without the US objecting — the US joined to prevent exactly thatCNBC 08-03 (search summary)
  • attributed A hike hurts their own bond market — the weak yen lifts long JGBs, which lifts the US long bondWang 08-15 (the JPM channel)
Supporting material — what they want, what they fear, the levers, what they watch, their words, the calls they own

What they want

  • stated 'Countered excessive volatility and disorderly movements in the Japanese yen' — the MoF's stated purposeMoF statement 2026-08-03 (CNBC/Al Jazeera, search summary)
  • stated Policy normalisation 'with upside price risks in mind'; underlying inflation 'quite closely' approaching 2%Ueda 2026-09-01/02 (Japan Times/Bloomberg, search summary; page paywalled)
  • attributed Dollars for intervention WITHOUT selling Treasuries — FIMA repo, the foreign repo pool, swap linesWang session 01; Setser 08-04; the US's own stated motive

What they fear

  • attributed The yen through the intervention level again — the differential is 'just too large' and intervention alone is 'a losing war'Wang 08-08
  • attributed A JGB long-end tantrum — the weak yen lifts long JGBs, which lifts the US long bond (the JPM channel Wang grants)Wang 08-15
  • stated Being forced to sell Treasuries — the outcome the US intervened to preventCNBC 08-03 (search summary)

Levers · footprint

  • stated The BoJ policy rate — the durable fix (Setser, Wang)
    IRLTLT01JPM156N 2.67 2026-06-01 STALE
    Ueda 09-01 signalled a September hike; JGB 10y is the only Japanese rate we collect (monthly)
  • revealed FX intervention — MoF orders, BoJ executes; ¥8.45tn (~$52.8bn) reported 07-30
    MD_USDJPY 156 2026-09-06 DEXJPUS 159.97 2026-08-28
    07-30 solo, 07-31 joint; 2022 and 2024 precedents
  • attributed Where the dollars come from — the NY Fed foreign repo pool ('mostly Japan'), FIMA repo, swap line
    WLRRAFOIAL 357,217 2026-09-02 H41RESPPALGTRFNWW 0 2026-09-02 SWPT 132 2026-09-02
    Wang: the pool is what they actually draw; FIMA baseline zero through 07-29 (dollar_plumbing)
  • stated JGB purchase taper / long-end operations
    no series — a document, a rule, or an announcement
    no JGB purchase series collected — declared gap

What they watch → what we collect

USD/JPYthe intervention itselfMD_USDJPY156 94 n=4971, 18.9y2026-09-06
JGB 10y (monthly)Wang 08-15 channelIRLTLT01JPM156N2.67 78 n=450, 37.4y2026-06-01 STALE
The US–Japan rate differentialDGS24.34 59 n=10039, 40.1y2026-09-03
Import pricesnot collected — not collected
Their own dollar pool at the NY FedWang 08-08WLRRAFOIAL357.22 $bn92 n=1238, 23.7y2026-09-02

In their words

2026-08-03 secondary

“countered excessive volatility and disorderly movements in the Japanese yen in recent months”

Japan Ministry of Finance statement (CNBC/Al Jazeera 08-03, search summary — verify verbatim)
2026-08-08 attributed

“a losing war unless you adjust interest rate differentials”

Wang, Markets Weekly (attributed reading, not the BoJ's words)

Dated calls they own

no tracker entries owned

On the calendar

2026-09-18 Bank of Japan monetary policy meeting (Sept 17-18) — Ueda signalled an additional hike is under consideration (09-01); principals:boj_mof
policymaker People's Bank of China / SAFE — the full card: the decision in front of them, their playbook, what they have done, what they cannot do
policymaker
The marginal official buyer of gold and the manager of the yuan — the principal whose actions we see only in the price
next: 2026-10-07 The next monthly reserves report (September's gold) — does the 21-month streak s

China's central bank. It has bought gold for 21 months straight and keeps the yuan on a short leash. We only ever see it in the price — there is no purchase or reserves series here — so this card is the thinnest, on purpose.

Twenty-one consecutive months of reported gold purchases to July 2026, the largest monthly buy since 2023 in July, and a yuan fix near 6.78 — a reserve manager acting steadily while every Western principal on this page acts in a hurry.

1 The decision in front of them

2026-10-07 · The next monthly reserves report (September's gold) — does the 21-month streak survive a gold down-month?
The options on the table
  • Keep buying into the fall — a seizure-risk diversifier
  • Pause on a down-month — a price-chaser
What decides it — live
MD_XAUUSD 4,429 2026-09-06 DEXCHUS 6.73 2026-08-28 DFII10 2.42 2026-09-03
House base case house analysis

The streak continues regardless of the gold price; the fix stays managed in small steps. The two are separate books.

What would prove that wrong

A reported pause on a gold down-month.

2 Where the data sits against their lines

The scorecard — is it moving their way?

The yuan (USD/CNY) — lower is stronger yuan
line 6.78 · -0.06 · marked
6.73-0.07 / 60d→ their way
US real yields — the cost of holding gold instead of Treasuries2.42%+0.16% / 60d← against
Gold — their footprint, not a goal4,429$+351.73$ / 60dtheir tool — not scored

Levels — stated, or revealed by acting

levelserieslevelnowdistancestate
6.7829 — the fix on 2026-08-26 (secondary source)revealed PBoC fixing (reported) · tradingpedia 2026-08-26 (search summary)DEXCHUS6.786.73-0.06marked
The yuan
7.397.036.67fix aug262023-09-012025-03-072026-08-2812
  1. 1 2026-07-31 July gold purchase reported as the largest month
  2. 2 2026-08-26 USD/CNY fix 6.7829, nudged stronger
Gold — the only footprint of the reserve shift we collect
5,553.533,555.071,556.612023-09-082025-03-142026-09-0612
  1. 1 2026-07-31 July gold purchase reported as the largest month
  2. 2 2026-08-26 USD/CNY fix 6.7829, nudged stronger

3 Their playbook — if this, then that

ifthenhow we would see itbasis
Gold fallsKeep buying — the streak has run through every kind of month since it beganMD_XAUUSD 4,429 2026-09-06inferred21 consecutive monthly increases (WGC 2026-08, secondary)
Depreciation pressure on the yuan
marked line 6.78 · now 6.73
Nudge the fix in small steps; no step changeDEXCHUS 6.73 2026-08-28revealedthe August fixes (secondary)
US real yields spikeNo change to the gold programme — the bid is not rate-driven (the house's gold_falsifier tests exactly this)DFII10 2.42 2026-09-03 MD_XAUUSD 4,429 2026-09-06inferredtracker gold_falsifier_2026

If the fear hits house analysis

If US real yields hold the 95th percentile and gold gives back 20% (the gold_falsifier FALSIFIED branch), the tell for whether the PBoC bid is price-sensitive is the reported monthly tonnage: a buyer diversifying for seizure risk keeps buying into the fall; a buyer chasing price stops. Disconfirmer of the 'steady reserve manager' read: a reported pause in the streak on a gold DOWN month.

4 What they have done

datewhat they did
2026-07-31July gold purchase reported as the largest monthly since 2023; 21st consecutive monthKitco 2026-08-07; WGC 2026-08 (search summaries)
2026-08-26USD/CNY fix 6.7829, nudged strongertradingpedia (search summary — secondary)

5 What they cannot or will not do

  • stated Everything we see is the price — no purchase, reserves or TIC series collectedpanel_manifest declared gaps
  • inferred Cannot sell dollars at a pace that moves the price against itselfreserve-manager arithmetic
Supporting material — what they want, what they fear, the levers, what they watch, their words, the calls they own

What they want

  • revealed Reserves diversified out of dollar claims into gold — 21 consecutive monthly increases to ~2,366t (July 2026)World Gold Council China update 2026-08 (search summary); Kitco 2026-08-07
  • revealed A managed yuan — the fix nudged stronger through August (6.7829 on 08-26)tradingpedia 2026-08-26 (search summary — secondary)
  • attributed Internal devaluation via liquidity while the nominal exchange rate holds — Howell's readingHowell framework 4

What they fear

  • inferred Dollar-asset seizure or sanction risk — the reason the gold streak beganthe purchase streak itself; Gromen framework 6
  • inferred Disorderly depreciation and capital flight — the reason the fix is managedthe fixing mechanism
  • attributed Deflation and the debt spiral — Pettis's structural readPettis profile

Levers · footprint

  • revealed The daily USD/CNY fix
    DEXCHUS 6.73 2026-08-28
    fix set stronger through August 2026 (secondary)
  • revealed Official gold purchases — monthly, reported with a lag, and (Gromen) possibly understated
    MD_XAUUSD 4,429 2026-09-06 GC_F 4,430 2026-09-04
    21-month streak; the price is the only footprint we collect
  • inferred Treasury holdings (TIC) — the sell side of the diversification
    no series — a document, a rule, or an announcement
    TIC not collected — declared in panel_manifest as a known gap
  • attributed Domestic liquidity operations — Howell's daily reconstruction, unreproducible here
    no series — a document, a rule, or an announcement
    Howell: 'purely proof by association'

What they watch → what we collect

USD/CNYthe fixDEXCHUS6.73 41 n=10007, 40.1y2026-08-28
Gold in dollars — and the house's gold-in-yuan ratio (derived.ratios.gold_cny)Howell: watch yuan-gold, not dollar-goldMD_XAUUSD4,429 97 n=4961, 18.8y2026-09-06
Official reserves — gold tonnes and Treasury holdingsnot collected — SAFE monthly reserves and TIC not collected; both are free primary sources and a build candidate
US real yields — the opportunity cost of the gold bidgold_falsifier_2026DFII102.42 96 n=5923, 23.7y2026-09-03

In their words

no quotes on record — see the profile

Dated calls they own

open Gold's bid is monetary and fiscal rather than rate-driven, and it will therefore hold its level through a sustained real-yield state at or a 2027-03-01

On the calendar

no dated checkpoint matched
bloc Primary dealers & bank balance sheets — the full card: the decision in front of them, their playbook, what they have done, what they cannot do
bloc
The 24-odd firms obliged to bid every auction and to make the market in what they bought — constrained by the leverage ratio, the G-SIB surcharge, and their own VaR
next: 2026-09-10 The next coupon auctions (3Y/10Y/30Y, week of 09-08) into a warehouse that was a

The big banks that must bid at every Treasury auction and hold what they buy. They break when they are already full and get forced to take more — which is exactly what happened on August 18th, the day before Treasury doubled its buybacks.

On 2026-08-18 they were `capacity_exhausted` at the 20Y with G11L21 inventory at the 95th percentile; Treasury raised the buyback cap the next morning. Everything Bessent does is, mechanically, done to this balance sheet.

1 The decision in front of them

2026-09-10 · The next coupon auctions (3Y/10Y/30Y, week of 09-08) into a warehouse that was at the 95th percentile on 08-18 — and the first enlarged buyback the same week
The options on the table
  • Absorb normally (dealer takedown near its mean, inventory unchanged)
  • Forced absorption (takedown z high) with a full warehouse — the capacity_exhausted read again
What decides it — live
PD_COUPON_G11L21_NET_MN 64,997 2026-08-26 SOFR 3.66 2026-09-03 SOFR_P99 3.74 2026-09-03 PD_FAILS_TO_DELIVER_UST_MN 76,655 2026-08-26
House base case house analysis

They sell what they can into the 09-10 buyback (the offered volumes already show this) and take the auctions; the read stays normal unless the 30Y retests 5.34 the same day.

What would prove that wrong

Swap spreads stable through a weak auction — then dealers were never the constraint.

2 Where the data sits against their lines

The scorecard — is it moving their way?

Funding stress — repo rate minus the Fed's floor (SOFR − IORB)0.01pp+0.00pp / 30d= flat
Settlement fails — the plumbing breaking76.66$bn-6.84$bn / 60d→ their way
Long bonds sitting in their warehouse (11–21y)65$bn-12.39$bn / 60d→ their way

Levels — stated, or revealed by acting

levelserieslevelnowdistancestate
G11L21 inventory at the 95th percentile — the state on 2026-08-18 when the read went capacity_exhaustedrevealed served auction_internals · QRA_BASELINE §1dPD_COUPON_G11L21_NET_MN
The warehouse — long-bucket net positions
11–21y net $bn 65.00>21y net $bn 51.75
82.4745.628.772023-08-302025-03-052026-08-26123
  1. 1 2026-04-01 eSLR modification effective (adopted 2025-11-25)
  2. 2 2026-08-18 20Y read capacity_exhausted: dealer_pct_z +1.49,
  3. 3 2026-08-19 Treasury doubled the long-end buyback cap ~4h be
Funding stress at the ceiling
SOFR % 3.66IORB % 3.65
5.554.473.402024-09-062025-09-052026-09-03123
  1. 1 2026-04-01 eSLR modification effective (adopted 2025-11-25)
  2. 2 2026-08-18 20Y read capacity_exhausted: dealer_pct_z +1.49,
  3. 3 2026-08-19 Treasury doubled the long-end buyback cap ~4h be

3 Their rule — if this, then that

ifthenhow we would see itbasis
Full warehouse AND a forced takedown at auctionSell off-the-runs into Treasury's buyback; widen quotes; fund more in repoPD_COUPON_G11L21_NET_MN 64,997 2026-08-26 BUYBACK_LS_10Y20Y_OFFERED_BN 7.4 2026-08-11 PD_REPO_UST_MN 3,010,949 2026-08-26revealedauction_internals capacity rule; 08-18 served read
Repo tails out (SOFR p99 well above the median)Draw the SRF — the Fed's ceilingSOFR_P99 3.74 2026-09-03 SOFR 3.66 2026-09-03 RPONTSYD 0 2026-09-04revealedplumbing rung 1
Fails spikeThe plumbing is breaking — March 2020 shape; the policy response is Treasury's, then the Fed'sPD_FAILS_TO_DELIVER_UST_MN 76,655 2026-08-26revealedrung 3
Regulators open the doorThe permanent SLR exemption askan announcement, not a seriesstatedSIFMA letters (search summary)

If the fear hits house analysis

If inventory is at the 95th percentile AND an auction tails with a high dealer takedown, the bloc does not choose — it sells what it can (off-the-runs, into Treasury's buyback, which is exactly what the offered volumes show) and widens what it quotes. The footprint is fails up, SOFR p99 up, swap spreads more negative. Disconfirmer: swap spreads stable through the episode — Wang's test that dealers are NOT the constraint.

4 What they have done

datewhat they did
2026-04-01eSLR modification effective (adopted 2025-11-25) — tracker 'SLR reduction' VERIFIEDconfig/tracker.yaml
2026-08-1820Y read capacity_exhausted: dealer_pct_z +1.49, G11L21 inventory 95th pct; a $2bn buyback op the same day did not arrest the 30YQRA_BASELINE §1d
2026-08-19Treasury doubled the long-end buyback cap ~4h before the 20Y auctionsb0607

5 What they cannot or will not do

  • stated Must bid at every auction — they cannot step awayprimary-dealer obligations
  • revealed The leverage ratio (eSLR effective 04-01) and the VaR budget cap the warehouse before appetite doestracker 'SLR reduction'
Supporting material — what they want, what breaks them, the levers, what they watch, their words, the calls they own

What they want

  • stated A permanent SLR exemption for Treasuries — SIFMA's standing askSIFMA letters (search summary); eSLR rule effective 2026-04-01 (tracker VERIFIED)
  • inferred Bills rather than coupons — duration they do not have to warehousethe balance-sheet constraint
  • inferred Low realised vol — the VaR budget is what actually limits inventoryauction_internals capacity rule

What breaks them

  • revealed BREAKS WHEN forced takedown meets full inventory — the `capacity_exhausted` rule: dealer takedown z high AND mapped-bucket inventory at a high percentilederive/auctions.py; served 2026-08-18 on the 20Y
  • revealed BREAKS WHEN repo tails out — the 99th-percentile SOFR print moves before the median (rung 1)panel_manifest: +12bp at p99 vs +3bp at the median on 2026-08-31
  • revealed BREAKS WHEN fails spike — the mechanical dysfunction tell MOVE cannot fake (March 2020)PD_FAILS series, weekly to 2013

Levers · footprint

  • revealed How much of each auction they are left holding
    no series — a document, a rule, or an announcement
    served as auction_internals.tenors[].dealer_pct_z — a gauge, not a series
  • revealed Net coupon positions by bucket — the long buckets are the ones that fill
    PD_COUPON_G11L21_NET_MN 64,997 2026-08-26 PD_COUPON_G21_NET_MN 51,751 2026-08-26 PD_COUPON_G7L11_NET_MN 35,028 2026-08-26
    G11L21 at the 95th percentile going into the 08-19 20Y
  • revealed How the inventory is funded — repo out, reverse repo in
    PD_REPO_UST_MN 3,010,949 2026-08-26 PD_RREPO_UST_MN 2,723,167 2026-08-26
    rung 4 of the Treasury-function ladder
  • revealed The Fed's standing repo — their ceiling
    RPONTSYD 0 2026-09-04
    nonzero on ~half of sessions at nominal size
  • stated The SLR ask — no series
    no series — a document, a rule, or an announcement
    §2b names the exemption as the escalation that ends 'duration management' as a description

What they watch → what we collect

SOFR − IORB and the SOFR tailplumbing rung 1SOFR3.66 62 n=2104, 8.4y · short window2026-09-03
IORB3.65 39 n=1867, 5.1y · short window2026-09-07
SOFR_P993.74 61 n=2103, 8.4y · short window2026-09-03
Failsrung 3PD_FAILS_TO_DELIVER_UST_MN76.66 $bn37 n=700, 13.4y2026-08-26
Long-bucket inventoryauction capacity rulePD_COUPON_G11L21_NET_MN65 $bn96 n=243, 4.6y · short window2026-08-26
Realised bond vol — the VaR inputnot collected — derived.bond_vol (a gauge on ZN_F), not a series; MOVE itself is owner-pasted

In their words

no quotes on record — see the profile

Dated calls they own

open Treasury will act to arrest disorderly long-end repricing and will escalate the tool as the strain level rises: the 2026-08-19 doubling of t 2026-11-04
resolved SLR reduction 2026-03-31

On the calendar

2026-09-08 3-Year note auction, $58.0bn — results ingest at the next 00:30Z run
2026-09-09 9-Year 11-Month note auction reopening, $39.0bn — results ingest at the next 00:30Z run
2026-09-10 29-Year 11-Month bond auction reopening, $22.0bn — results ingest at the next 00:30Z run
2026-09-15 19-Year 11-Month bond auction reopening — results ingest at the next 00:30Z run
2026-09-17 9-Year 10-Month note auction reopening — results ingest at the next 00:30Z run
bloc Money funds & stablecoin issuers — the bill bid — the full card: the decision in front of them, their playbook, what they have done, what they cannot do
bloc
The buyers Treasury's issuance mix is designed for: money-market funds holding bills and repo, and GENIUS-Act stablecoin issuers required to hold cash and short Treasuries 1:1
next: 2026-11-02 The Q4 financing estimate — bill share of net new borrowing — after September's

Money-market funds and stablecoin issuers — the buyers Treasury's bill-heavy borrowing is designed for. Their cushion at the Fed (the RRP) is empty, so every new bill is now paid for out of bank reserves. They break when bills get scarce or a stablecoin gets redeemed.

The RRP buffer is gone (served ~$2bn on 08-04 against a ~$2.5tn peak), so every bill Treasury sells to rebuild the TGA is now paid for out of bank reserves — this bloc is the delivery vehicle for the drain the §2 tracker entry is scoring.

1 The decision in front of them

2026-11-02 · The Q4 financing estimate — bill share of net new borrowing — after September's bill cuts on the tax date and October's 'increases across the bill curve'
The options on the table
  • Bills absorbed out of deposits (reserves fall with the TGA build — the drain)
  • Bills scarce relative to the floor (RRP refills; no drain)
What decides it — live
RRPONTSYD 0.68 2026-09-04 DGS3MO 3.89 2026-09-03 IORB 3.65 2026-09-07 FISCAL_MKT_BILLS_BN 7,248 2026-08-31
House base case house analysis

The drain: RRP stays near zero, reserves fall with the TGA toward the stated late-October peak, and SOFR minus IORB widens into it.

What would prove that wrong

RRP refilling while the TGA builds — bills scarce, no drain, the section-2 price leg does not fire.

2 Where the data sits against their lines

The scorecard — is it moving their way?

Bill yield above the Fed's floor (3-month bill − IORB)0.24pp+0.00pp / 30d= flat
Bills outstanding — what they are asked to absorb7,248$bn+557.40$bn / 60d→ their way
Cash parked at the Fed (RRP) — the cushion, shown not scored
line 2.25$bn · -1.57 · marked
0.68$bn-0.97$bn / 30dtheir tool — not scored

Levels — stated, or revealed by acting

levelserieslevelnowdistancestate
RRP ~$2bn on 2026-08-04 — the buffer is gone; a REFILL from here is the scarcity tellrevealed served baseline (QRA_BASELINE) · QRA_BASELINE served baseline 2026-08-05RRPONTSYD2.250.68-1.57marked
The buffer that used to insulate reserves
2,758.011,276.90-204.21rrp exhausted2022-09-092024-09-132026-09-0412
  1. 1 2026-07-10 Circle received an OCC national trust bank chart
  2. 2 2026-08-04 RRP served at $2.251bn — buffer exhausted
Bills outstanding — what they are asked to absorb
7,536.385,446.353,356.322022-09-302024-09-302026-08-3112
  1. 1 2026-07-10 Circle received an OCC national trust bank chart
  2. 2 2026-08-04 RRP served at $2.251bn — buffer exhausted

3 Their rule — if this, then that

ifthenhow we would see itbasis
Bills get scarce or cheap to the floor
marked line 2.25 · now 0.68
Park at the RRP — it refills from zeroRRPONTSYD 0.68 2026-09-04 DGS3MO 3.89 2026-09-03 IORB 3.65 2026-09-07revealed2023 in reverse
Bill supply rises with the buffer at zeroAbsorb out of bank deposits — reserves fallFISCAL_MKT_BILLS_BN 7,248 2026-08-31 WRESBAL 2,894,531 2026-09-02 WTREGEN 967,935 2026-09-02revealedQRA_BASELINE section 1c channel B
A stablecoin is redeemed at scaleReserves sold — the bid becomes supplyDGS3MO 3.89 2026-09-03inferredthe GENIUS reserve rule

If the fear hits house analysis

If RRP refills while the TGA is still building, bills have become scarce relative to the floor and Treasury's October 'increases across the bill curve' will be absorbed without a reserve drain — the §2 entry's price leg would then NOT fire. That is the benign branch. The stress branch is the opposite: RRP stays at zero, reserves fall with the TGA, and SOFR−IORB widens. Disconfirmer of the whole frame: both legs quiet through the late-October peak.

4 What they have done

datewhat they did
2026-07-10Circle received an OCC national trust bank chartersearch summary — secondary
2026-08-04RRP served at $2.251bn — buffer exhaustedQRA_BASELINE served baseline

5 What they cannot or will not do

  • revealed The RRP buffer is gone (about $2bn on 08-04) — there is nothing left to rotate out ofserved baseline
  • stated Stablecoin issuers must hold bills 1:1 by statute — the bid is captive, not discretionaryGENIUS Act (search summary)
Supporting material — what they want, what breaks them, the levers, what they watch, their words, the calls they own

What they want

  • inferred Bill supply at a yield above the Fed's floor — the RRP is where they go when there isn't enoughthe RRP mechanism; QRA_BASELINE §1c
  • stated Stablecoin growth — reserves held 1:1 in cash and short Treasuries, attested monthlyGENIUS Act reserve requirement (search summary)

What breaks them

  • revealed BREAKS WHEN bills get scarce — RRP refills, and bill yields fall through the policy floor2023 precedent in reverse
  • inferred BREAKS WHEN a stablecoin is redeemed at scale — reserves are sold, the bill bid becomes bill supplythe reserve rule
  • revealed BREAKS WHEN the buffer is zero and Treasury drains — the 'bills are dovish' prior fails (§1c channel B)QRA_BASELINE §1c

Levers · footprint

  • revealed Overnight RRP usage — the swing
    RRPONTSYD 0.68 2026-09-04
    ~$2.5tn peak → ~$2bn on 2026-08-04
  • revealed Money-fund Treasury holdings and repo lending
    OFR_MMF_UST_HOLDINGS 3,452,555,748,241 2026-07-31 OFR_MMF_REPO_UST 1,798,110,133,814 2026-07-31 OFR_MMF_REPO_FED 6,829,980,602 2026-06-30
    OFR monthly, ~1 month lag
  • stated Stablecoin reserves in bills — no series
    no series — a document, a rule, or an announcement
    issuer attestations are monthly PDFs; not collected

What they watch → what we collect

RRPthe bufferRRPONTSYD0.68 11 n=3320, 23.6y2026-09-04
3-month bill vs IORB — is the bill cheap to the floor?inferredDGS3MO3.89 56 n=10006, 40.0y2026-09-03
IORB3.65 39 n=1867, 5.1y · short window2026-09-07
Bills outstandingthe supply they absorbFISCAL_MKT_BILLS_BN7,248 100 n=308, 25.6y2026-08-31
Stablecoin float and reserve compositionnot collected — not collected; DeFiLlama/issuer attestations are public — a build candidate

In their words

no quotes on record — see the profile

Dated calls they own

open Treasury's stated TGA rebuild to ~$950bn at end-September and a projected ~$1.05tn (±$50bn) peak in late October drains bank reserves roughl 2026-11-04

On the calendar

2026-11-02 Treasury QRA financing estimates (Q4) — 3:00pm ET; carries total borrowing + bill share of net new financing
bloc Corporate buyback desks — the full card: the decision in front of them, their playbook, what they have done, what they cannot do
bloc
The largest single bid in US equities — S&P 500 repurchases ran ~$1.0tn in the twelve months to Sept-2025; 2026 authorisations were reported on pace for $1.2tn
next: 2026-10-12 The Q3 earnings blackout wave (mid-October) — the bid switches off by rule; then

Companies buying back their own stock — the biggest single buyer of US equities. The bid runs on cheap debt and fat profits and switches off around earnings by rule, not by mood.

A bid that is mechanical, pre-authorised, and switched off by the calendar (blackout windows) rather than by the tape — which is why the blackout proxy is on the main page and why this bloc has no fear, only a cost of capital.

1 The decision in front of them

2026-10-12 · The Q3 earnings blackout wave (mid-October) — the bid switches off by rule; then the Q3 buyback figure from S&P DJI (about December)
The options on the table
  • Authorisations keep pace (about $1.2tn/yr reported) — the bid returns in November at size
  • Authorisations shrink with wider spreads or lower profits
What decides it — live
BAMLC0A0CM 0.81 2026-09-03 BAMLC0A4CBBB 1 2026-09-03 CP 4,302 2026-04-01 SP500 7,719 2026-09-04
House base case house analysis

The bid returns after blackout at similar size — spreads are near their lows and profits are up 20% (Warsh). The blackout itself is the only predictable absence.

What would prove that wrong

Repurchases rising into wider spreads — a cash-funded bid this card understates.

2 Where the data sits against their lines

The scorecard — is it moving their way?

Cost of borrowing — investment-grade spread0.81%+0.06% / 60d← against
Cost of borrowing — BBB spread1%+0.06% / 60d← against
Stocks — S&P 5007,719+181.17 / 60d→ their way
Corporate profits (quarterly)4,302$bn+510.21$bn / 180d→ their way

Levels — stated, or revealed by acting

no stated or revealed levels — this actor has not named a number
The cost of the bid
IG OAS % 0.81BBB OAS % 1.00
1.701.180.662023-09-082025-03-142026-09-031
  1. 1 2025-12-18 S&P DJI: twelve-month buybacks to Sept-2025 a re

3 Their rule — if this, then that

ifthenhow we would see itbasis
IG spreads widen through their bandShrink the next authorisation cycle — slow, quarterlyBAMLC0A0CM 0.81 2026-09-03 BAMLC0A4CBBB 1 2026-09-03inferredthe leverage arithmetic
The calendar says blackoutOff — mechanically, about 5 weeks before earnings to 48h afteran announcement, not a seriesrevealedconfig/blackout.yaml; flow_calendar
A higher excise is legislatedShift to dividendsan announcement, not a seriesinferredthe 1% IRA excise precedent

If the fear hits house analysis

If IG OAS widens through its band while the index is off its high, the bid does not argue — it shrinks with the next authorisation cycle, and the blackout proxy shows when it is absent regardless. Disconfirmer: repurchases rising into wider spreads (a sign the bid is being funded from cash, not debt — Warsh's +20% profits).

4 What they have done

datewhat they did
2025-12-18S&P DJI: twelve-month buybacks to Sept-2025 a record ~$1.02tnS&P Global press release (search summary)

5 What they cannot or will not do

  • revealed Blackout windows are a rule, not a choiceflow_calendar
  • inferred The budget is a residual of profits and the cost of debtthe arithmetic
Supporting material — what they want, what breaks them, the levers, what they watch, their words, the calls they own

What they want

  • revealed Cheap debt — IG spreads 'near the low ends of their historical ranges' (Warsh)JH 2026-08-28 on credit spreads; BAMLC0A0CM
  • revealed Profits — S&P 500 profits +20% over the past year (Warsh); the repurchase budget is a residual of themJH 2026-08-28

What breaks them

  • inferred BREAKS WHEN the cost of debt rises through the earnings yield — the arithmetic that makes debt-funded repurchases accretive reversesthe leverage arithmetic
  • revealed BREAKS WHEN the calendar says so — blackout windows remove the bid mechanically ~5 weeks before earnings to 48h afterconfig/blackout.yaml; derived.flow_calendar
  • inferred BREAKS WHEN policy taxes it — the 1% excise exists; a higher rate is the political leverIRA 2022 excise

Levers · footprint

  • revealed Authorisations and execution pace — no free series
    no series — a document, a rule, or an announcement
    S&P DJI quarterly release is public but not collected — a build candidate
  • revealed The blackout calendar — a mechanical off-switch
    no series — a document, a rule, or an announcement
    derived.flow_calendar.blackout (mega-cap proxy + owner rows)
  • revealed IG issuance to fund it
    BAMLC0A0CM 0.81 2026-09-03 BAMLC0A4CBBB 1 2026-09-03
    Warsh: issuance volumes 'quite strong this year'

What they watch → what we collect

IG and BBB spreads — the cost of the bidJH 2026-08-28BAMLC0A0CM0.81 35 n=827, 3.2y · short window2026-09-03
BAMLC0A4CBBB1 27 n=788, 3.0y · short window2026-09-03
Corporate profitsJH 2026-08-28CP4,302 100 n=160, 39.8y2026-04-01
The index and its highinferredSP5007,719 100 n=2555, 10.2y2026-09-04
SPX_HIGH7,750 98 n=539, 2.1y · short window2026-09-04
Blackout share of market capnot collected — derived.flow_calendar — a gauge; the true 500-name figure is owner-seeded

In their words

no quotes on record — see the profile

Dated calls they own

no tracker entries owned

On the calendar

no dated checkpoint matched
bloc Leveraged funds — the basis trade, CTAs, vol-control — the full card: the decision in front of them, their playbook, what they have done, what they cannot do
bloc
Rule-driven balance sheets: ~$2.0tn of cash Treasuries held by hedge funds at year-end 2025 against ~$1.4tn of short futures (OFR, 2026-08-19); trend and vol-target programs that buy strength and sell vol
next: 2026-09-16 The FOMC as a volatility event (and the 09-11 CPI before it) — the first test of

Hedge funds running the Treasury basis trade, trend-followers, and volatility-targeting funds. None of them decide anything — repo cost, margin and volatility decide for them — which is why when something breaks, they are the first footprint.

The actor that does not decide — 'if repo rates spike or futures margin requirements increase abruptly, hedge funds may be forced to unwind positions rapidly' (OFR) — and therefore the actor whose footprint arrives first when any principal above gets its fear.

1 The decision in front of them

2026-09-16 · The FOMC as a volatility event (and the 09-11 CPI before it) — the first test of the basis trade, vol-control and CTA rules since Jackson Hole
The options on the table
  • Vol stays contained — positions held, carry collected
  • Repo or margin shock — basis unwinds first, vol-control sells second, CTAs flip last
What decides it — live
SOFR_P99 3.74 2026-09-03 SOFR 3.66 2026-09-03 VIXCLS 14.32 2026-09-03 TFF_ZN_LEVNET_PCTOI -39.09 2026-09-01
House base case house analysis

No unwind absent a repo-tail or margin shock; the OFR names those two triggers and neither is in the served data today. If one lands, the footprint arrives in days and precedes every policy response on this page.

What would prove that wrong

A rate shock with fails flat and swap spreads stable — the leverage was not where the OFR says it is.

2 Where the data sits against their lines

The scorecard — is it moving their way?

Repo tail — 99th-percentile SOFR above the median0.08pp+0.00pp / 30d= flat
Volatility — VIX14.32-2.18 / 30d→ their way
Leveraged short in 10y futures (% of open interest) — shown, not scored-39.09%-1.56% / 60dtheir tool — not scored

Levels — stated, or revealed by acting

no stated or revealed levels — this actor has not named a number
The short leg of the basis trade — leveraged-money net % of open interest
ZN leveraged net %OI -39.09ZB leveraged net %OI -16.73
-6.64-29.14-51.632023-09-052025-03-112026-09-0112
  1. 1 2026-06-22 Fed note: the basis trade is the key driver of h
  2. 2 2026-08-19 OFR: hedge funds' cash Treasury holdings reach $
The vol the rule keys off
47.9129.0410.172024-09-062025-09-052026-09-0312
  1. 1 2026-06-22 Fed note: the basis trade is the key driver of h
  2. 2 2026-08-19 OFR: hedge funds' cash Treasury holdings reach $

3 Their rule — if this, then that

ifthenhow we would see itbasis
Repo rates spike or margin requirements jumpUnwind the basis — sell cash Treasuries, buy back futures; long-end selloff, swap spreads collapseSOFR_P99 3.74 2026-09-03 TFF_ZN_LEVNET_PCTOI -39.09 2026-09-01 COT_ZN -14.12 2026-09-01statedOFR 2026-08-19 (verbatim mechanism)
Realised volatility risesVol-control sheds equity exposure by ruleVIXCLS 14.32 2026-09-03revealedderived.vol_control_proxy
The trend breaksCTAs reverse on the signal they entered onCOT_ZN -14.12 2026-09-01 COT_ZB -9.95 2026-09-01revealedderived.cot_crowding

If the fear hits house analysis

If SOFR p99 spikes or a margin hike lands, this bloc unwinds in the order of its own leverage: basis first (cash Treasuries sold, futures bought back — a long-end selloff with swap spreads collapsing), vol-control second (equities sold on the realised-vol print), CTAs last (on the trend break). The footprint arrives within days and precedes every policy response on this page. Disconfirmer: a rate shock with fails flat and swap spreads stable — then the leverage was not where the OFR says it is.

4 What they have done

datewhat they did
2026-06-22Fed note: the basis trade is the key driver of hedge-fund Treasury exposureFEDS Notes 2026-06-22 (search summary)
2026-08-19OFR: hedge funds' cash Treasury holdings reach $2.0tn (YE-2025); short futures ~$1.4tnOFR blog (fetched, verbatim figures)

5 What they cannot or will not do

  • stated None of them decide — repo cost, margin and vol decide for themOFR 2026-08-19
  • stated About $2.0tn of cash Treasuries against about $1.4tn of short futures (YE-2025) — the stock that makes the unwind matterOFR 2026-08-19 (fetched)
Supporting material — what they want, what breaks them, the levers, what they watch, their words, the calls they own

What they want

  • stated Stable, cheap overnight repo and low futures margin — the two inputs the trade's leverage rests onOFR blog 2026-08-19 (verbatim mechanism)
  • revealed Positive carry and a stable basis; realised vol below the targetvol_control_proxy rule

What breaks them

  • stated BREAKS WHEN repo or margin moves abruptly — 'may be forced to unwind positions rapidly' and 'amplify volatility in the cash and futures markets'OFR 2026-08-19 (verbatim)
  • revealed BREAKS WHEN realised vol rises — vol-control sheds exposure mechanically (the March-2020 sequence)derived.vol_control_proxy
  • revealed BREAKS WHEN the trend flips — CTAs reverse on the same signal they entered onderived.cot_crowding

Levers · footprint

  • revealed Leveraged-money net %OI in ZN/ZB (CFTC TFF) — the basis-trade proxy; COT non-commercial beside it
    TFF_ZN_LEVNET_PCTOI -39.09 2026-09-01 TFF_ZB_LEVNET_PCTOI -16.73 2026-09-01 COT_ZN -14.12 2026-09-01 COT_ZB -9.95 2026-09-01
    OFR: ~$1.4tn short futures Q4-2025; served in crowding.basis_trade_proxy, labelled PROXY
  • revealed Repo-funded cash longs — the OFR's $2.0tn
    OFR_REPO_DVP_VOL_TOT 3,402,641,081,840 2026-09-03 OFR_MMF_REPO_UST 1,798,110,133,814 2026-07-31
    OFR blog 2026-08-19; the MMFs are the lenders
  • revealed Vol-control exposure — a rule, not a decision
    VIXCLS 14.32 2026-09-03
    derived.vol_control_proxy

What they watch → what we collect

Repo tails — the trigger the OFR namesOFR 2026-08-19SOFR_P993.74 61 n=2103, 8.4y · short window2026-09-03
SOFR3.66 62 n=2104, 8.4y · short window2026-09-03
Realised volvol-control ruleVIXCLS14.32 27 n=9266, 36.7y2026-09-03
Swap spreads and the basisnot collected — derived.swap_spread (DTCC); the cash-futures basis itself is not collected
Margin requirementsnot collected — CME margin changes are announcements, not a series — event-dossier territory

In their words

2026-08-19 primary

“If repo rates spike or futures margin requirements increase abruptly, hedge funds may be forced to unwind positions rapidly.”

OFR blog, 'Hedge Funds' Cash Treasury Holdings Reach $2 Trillion' (fetched)

Dated calls they own

no tracker entries owned

On the calendar

no dated checkpoint matched
A view of the data, not the product. Every claim carries a basis and a source; the prose behind each card lives in data/principals/ and the spine in config/principals.yaml. Chart markers ①②③ are the dated actions listed under each chart; dashed lines are levels they stated or revealed by acting. The analyst reads this in conversation.