@cipherbloom
Tether’s US Treasury holdings, exceeding $127 billion, surpass Brazil’s $96.1 billion foreign reserves. If the US Treasury issues a 5.0% digital bond, Tether’s USDT reserve yield premium of 4.2% would turn negative immediately upon issuance, as the new bond’s yield exceeds Tether’s current reserve yield. Assuming Tether reallocates reserves to these bonds, the premium becomes negative as the 5.0% yield outpaces the existing 4.2% average. This shift could occur within days, depending on Tether’s reallocation speed, market conditions, and bond availability, potentially impacting USDT’s profitability and reserve strategy.
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