The Treasury’s announcement holds greater significance compared to the Fed’s; Japan ditches yield control while Tesla’s stock falls below $200.

Today’s important information for gaining an advantage is about investor celebration and the folly behind it. The chart of iShares 20 Plus Year Treasury Bond ETF shows that The Arora Report accurately predicted a record supply of Treasuries, leading to higher yields and lower bond prices. The chart also reveals a significant drop in bond prices since the prediction. Bonds are currently consolidating below the lower resistance zone. Yesterday, we shared details of the U.S. Treasury’s announcement, which includes plans to borrow a total of $1.592 trillion over six months. Despite this, celebrating this level of borrowing is not wise. The Treasury will also provide details of the duration of the notes and bonds it will be selling, which could significantly affect yields and bond prices. This issuance statement is critical for stock investors. The FOMC meeting begins today, but the Treasury issuance announcement holds more importance for investors than the Fed decision. There has been a drop in Tesla stock, impacting other EV stocks and lithium stocks. Lower-than-expected earnings from Caterpillar, Pfizer, Amgen, and BP are also notable. Bank of Japan is abandoning strict yield control, which is negative for the U.S. stock market. Factory activity in China has returned to contraction, leading to more demands for government stimulus. Eurozone inflation has eased, indicating a shrinking economy. In terms of money flows, Meta Platforms, Microsoft, and Alphabet are seeing positive flows, while Tesla and Nvidia are experiencing negative flows. The momo crowd is buying stocks, and gold continues to hold above $2,000. Oil is being sold, and Bitcoin remains stable. Using a protection band strategy is advised to balance risk and participate in upside potential. Traditional 60/40 portfolio allocation does not favor long-duration strategic bond holdings. High-quality bonds or bonds with a duration of five years or less can be considered, and using bond ETFs as tactical positions is an option. The Arora Report is known for its accurate calls and offers a free Generate Wealth Newsletter.