US Treasuries are generating unprecedented returns, paying out about $2 million per minute in interest, as yields have surged to over 4% from virtually zero just two years ago. This dramatic shift, spurred by rate hikes from the Federal Reserve, has revitalized Treasuries as a stable source of income, reflecting their traditional economic role. Last year alone, interest payments on US government debt nearly doubled the decade's average to $900 billion, with projections from the Congressional Budget Office expecting this figure to continue rising annually.

Copper prices briefly soared above $10,000 a ton amid investor optimism about potential Federal Reserve rate cuts and a warning from Goldman Sachs about escalating supply shortages. The surge was part of a broader rally in risk assets, sparked by weaker-than-expected U.S. job figures, which fueled speculation of imminent Fed rate reductions. Despite a slight retreat in European trading, the outlook for copper remains bullish, driven by persistent supply-demand imbalances. Goldman Sachs has responded by lifting its year-end copper price forecast from $10,000 to $12,000 a ton.

In this deep dive, Mike Maloney unpacks the complexities of our current economic landscape with sharp precision.

Crude oil futures climbed on Tuesday after Israeli Prime Minister Benjamin Netanyahu dismissed a Hamas-approved cease-fire proposal as "sabotage," committing instead to continue military operations in Rafah, Gaza. Netanyahu critiqued the proposal for falling short of Israel's essential demands. This rejection comes amid ongoing conflict, with Israeli forces taking control of the Rafah border crossing, an action that drew criticism from Egypt, which has been mediating the cease-fire talks. Defense Minister Yoav Gallant asserted that operations in Rafah would persist until their objectives regarding Hamas are met.