The bid-to-cover surged from 2.402 to 2.565, comfortably above the six-auction average and the highest since September 2025 — suggesting that rumours of the Treasury market's demise were, as usual, somewhat premature. Internals were nothing short of spectacular: indirects — the polite euphemism for foreign central banks and sovereign wealth funds quietly loading up on American paper — exploded to 78.21% from a prior 63.95%, one of the five highest readings on record, last matched in September 2025 when the same feverish foreign appetite briefly convinced everyone the dollar's existential crisis had been cancelled.

And with Directs sliding to a meagre 9.5% — the lowest since January, suggesting domestic institutions found better things to do with their CPLie afternoon Day — Dealers were left holding a mere 12.32%, a number that looks positively skeletal against the 21.39% recent average, meaning the primary dealers who are contractually obligated to buy whatever nobody else wants were, for once, barely needed.

Overall, a surprisingly stellar auction — one that would warm any deficit-spending bureaucrat's heart, yet rests on a foundation of spectacular collective denial. The majority of investors have apparently not grasped that in an increasingly weaponized world, with Trump's Stagflation Special as the only item on the macro menu, the once-upon-a-time risk-free asset is rapidly auditioning for the title of the riskiest asset in the room.

🚨 The U.S. plans to use frozen Iranian assets to pay for the war... and people still wonder why central banks keep buying gold. 🚨

Imagine saving for decades, only to discover your assets can be frozen, sanctioned, confiscated, or "repurposed" overnight in the name of democracy.

🥇 Gold doesn't need permission.
🥇 Gold can't be printed.
🥇 Gold doesn't depend on politicians keeping their promises.

Every sanctions package sends the same message to the world:
"If it's in our system, it's not really yours."
That's why nations are quietly stacking gold while the public is distracted by headlines.

The question isn't whether the weaponization of the Dollar is happening.

The question is how much gold will cost when everyone finally realizes why.

⚠️ Watch before the next geopolitical crisis rewrites the rules again.

Learn to Earn what the mainstream media insights won't tell you.
https://themacrobutler.com/financial-academy/

In a plot twist that surprised absolutely nobody paying attention, headline PPI surged 1.1% MoM in May — well ahead of the 0.7% expected — leaving producer prices up a scorching 6.5% YoY, the highest since 2022, while core PPI politely came in cooler than forecast at +0.4% MoM, presumably to give the "inflation is under control" crowd something to cling to over social media. The star of the show was goods prices, which jumped 2.8% MoM — the largest increase since the data series began in December 2009 — with 80% of the carnage traced to a 10.7% explosion in energy costs, led by gasoline screaming 23.4% higher; pork, at least, had the decency to fall 10.1%, offering modest consolation to anyone planning a barbecue.

The Core CPI-PPI spread, meanwhile, is flashing an unmistakable warning that corporate margins are being quietly cremated — costs running hot at the factory gate while the consumer refuses to absorb them at the checkout, a squeeze that tends to end with either profit warnings or price hikes, neither of which feature prominently in the soft-landing brochure.

When goods inflation just posted its biggest jump on record, calling it a pipeline pressure is a bit like calling Vesuvius a scheduling inconvenience.

In a stunning display of central banking acrobatics that would make even a seasoned circus performer blush, the ECB has hiked its key interest rate to 2.25% — its first hike since 2023 — while simultaneously raising its inflation forecast to 3% for 2026 and slashing its growth outlook to a heroic 0.8%, because apparently the cure for a slowing economy is making borrowing more expensive. Madam Lagarde, the undisputed queen of arriving fashionably late to every policy party, solemnly informed reporters that "the outlook remains uncertain, with upside risks for inflation and downside risks for economic growth" — a sentence so spectacularly useless it could have been generated by a broken fortune cookie.

The ECB didn't pivot — it tripped, fell the other way, and called it forward guidance.

🚨 FOOD PRICES ARE EXPLODING... AND HARVEST SEASON HASN'T EVEN PEAKED YET 🚨

The propaganda says inflation is under control.

Meanwhile:
🌽 Crops are under pressure.
🌾 Harvests are shrinking.
🚢 Supply chains remain fragile.
🔥 Geopolitical tensions keep rising.

History is clear: when food prices surge, social unrest is never far behind.
People don't riot because stocks fall.
People riot when they can't afford to eat.

Smart investors are watching commodities.
Everyone else is watching headlines.

⚠️ The next crisis may not start on Wall Street—it may start in your grocery cart.

In a fitting grand finale to the Empire's weekly debt variety show, the Treasury's $22 billion 30-year auction delivered precisely what the discerning connoisseur of fiscal dysfunction has come to expect: ugly, slow, and tailing.
Priced at a high yield of 5.02% — barely a whisker below last month's historically embarrassing first-ever 5% coupon — the auction tailed the When Issued by 1.2bps, its third consecutive tail and the biggest since August 2025, suggesting that the queue of willing buyers for three decades of American sovereign paper is getting shorter by the month.

The bid-to-cover crawled in at 2.328 — marginally above last month's 2.303, which had the distinction of being the worst of the year, and still comfortably below the recent average of 2.43, meaning the improvement deserves roughly the same applause as finishing last instead of second-to-last. The internals were genuinely spectacular in their ugliness: Indirects — the foreign buyers who couldn't get enough 10-year paper — apparently took one look at 30 years of American fiscal trajectory and quietly backed away, collapsing to just 59.95% from 66.6%, the lowest since August 2025. Directs stepped up to 25.31%, above their recent average, which sounds heroic until one realises it mostly means domestic accounts held their nose and bought. Dealers, the buyers of last resort who are contractually forbidden from saying no, were left holding 14.74% — the most since July 2025 — a number that translates roughly as "we'll take what nobody else wanted, again."

In a nutshell, a dumpster fire with a bow tie: foreign demand collapsed to a ten-month low while Dealers — the Empire's contractually obligated buyers of last resort — absorbed their biggest backstop bid in nearly a year, dutifully catching what the rest of the world dropped.

In an increasingly weaponized world where sovereign debt compounds faster than the tax base servicing it, the once-upon-a-time risk-free asset has completed its quiet metamorphosis into the riskiest asset on the planet.

The Macro Butler joined Piggo’s Trading Desk for a tour of the globe’s most combustible macro themes — and pulled precisely zero punches.
The US seizing Iranian frozen assets to foot the repair bill for its Middle Eastern vassal states. A Taiwan Strait blockade and what it actually means for the semiconductor food chain — Intel versus Nvidia, dissected without the Wall Street cheerleading.
And the SpaceX IPO: why the smartest play isn’t buying the hype but stepping aside and letting the profitable celestial underdogs — think Sirius XM Holdings — do the heavy lifting while everyone else queues for the rocket that may never land in the black.

🎧 Watch now — before the next headline makes yesterday’s consensus look even more expensive.


https://themacrobutler.substack.com/p/interview-with-piggos-trading-desk-989

🚨 CALIFORNIA: THE FUTURE... OR A WARNING LABEL? 🚨

The state with:
💰 Some of the highest taxes
🏠 Some of the highest housing costs
⚡️ Some of the highest gasoline prices
🏕 And some of the largest homeless populations

Yet we're constantly told everything is working perfectly.

At what point does "progress" start looking suspiciously like decline?
California was once the land of opportunity.

Today it's becoming a case study in what happens when ideology collides with economic reality.
This story is bigger than California. It's a preview of where many countries are heading next when governments are misbehaving.

The Iran deal has now entered its Hollywood franchise phase. Every few weeks comes a new trailer announcing that peace is imminent, a deal is near, diplomacy is working, and everyone should remain calm. Then somehow the negotiations are delayed, the tensions escalate, the deadlines move, and another sequel gets released. By this point, the "Deal Is Near" narrative has had more reboots than Batman, more cliffhangers than Netflix, and a longer production schedule than the next Avatar movie. Investors may soon discover that the most reliable strategic reserve in the world is not oil, but the endless supply of optimistic headlines promising that peace is just one more meeting away.

🚀 SPACEX IPO? COUNT ME OUT. 🚀

Everyone wants the next big thing.
Everyone wants the next moonshot.
Everyone wants to buy the IPO.

Which is exactly why you should not buy it.

📈 Sky-high expectations
💸 Private investors looking for liquidity
🌕 Dreams already priced in
🐑 Retail investors arriving fashionably late

History is full of "can't miss" IPOs that somehow managed to miss.

Remember:
The best company is not always the best investment.
And the most exciting story is often the most expensive stock.
Before you FOMO into the next space-age gold rush, ask yourself:

Are you buying the future...
or financing someone else's exit?
Watch the full video before boarding this rocket. 🚀🔥

In a heartwarming tale of the bar being set so low it required excavation equipment, the University of Michigan's Consumer Sentiment index heroically bounced from its all-time record low of 44.8 in May to a still-deeply-depressing 48.9 in June — beating the 46.0 consensus estimate, which should tell you everything about the state of American optimism when exceeding 46 out of 100 qualifies as a victory lap. The culprit for this burst of euphoria? Gasoline prices eased early in the month, delivering particular relief to lower-income consumers for whom fuel comprises a larger share of their budgets — proof that the American dream has been successfully downsized to "slightly cheaper petrol." The real comedy, however, arrives in the inflation expectations data, where the headline number declined yet every single political party reported higher inflation expectations — a statistical achievement so creatively incoherent it raises the entirely reasonable question of whether someone is simply making it up.

When your consumer confidence index bounces off an all-time low and everyone still expects more inflation, the recovery is less "green shoots" and more "weeds in the pavement."