Arthur Hayes: If the U.S. Treasury cancels bond auctions, it could trigger "secret money printing" and may exacerbate the expansion of the money supply.

On April 9, CEX co-founder Arthur Hayes posted that “if the US Treasury decides to cancel the upcoming 10-year and 30-year Treasury auctions, this is a covert money printing action, as it would consume the TGA (Treasury General Account). This is a simple intermediate step to calm the chaos before ‘coward’ Powell fulfills his duties.” In his tweet, Arthur Hayes shared a summary of a Bloomberg article titled “The Treasury ‘close all positions’ dump leads to a surge in global long-term yields,” noting that the 30-year US Treasury yield recently surpassed 5%, marking the largest selling wave since 2020, with yields soaring approximately 40 basis points over the past three trading days, causing global bond yields to rise as well. At the same time, Hayes’s tweet carried a sarcastic tone, criticizing Federal Reserve Chairman Powell for potentially adopting a loose policy under pressure.