US Treasury Intervention: Markets React with 'Doping' Effect

The U.S. Treasury Department's announcement of increased long-term bond repurchases sent shockwaves through global markets. 30-year Treasury yields fell to 5.18%, while most S&P 500 stocks gained. However, chip producers declined, while gold and Bitcoin showed positive reactions. JPMorgan warned that this intervention could be short-lived. In Asia, the MSCI Asia Pacific index rose by 1.6%, while South Korea's Kospi Index surged by 5.6%. The People's Bank of China maintained 1 and 5-year LPR rates but forecast a potential rate cut due to economic weakness. The U.S. move to control borrowing costs also impacted oil prices, with Brent crude rising to $92 per barrel.

Markets are reacting with a 'doping' effect from the Treasury intervention: Yields fall while stocks fluctuate. The U.S. effort to lower borrowing costs is currently causing market volatility, particularly in the chip sector.