11Dec2025 - Au79 Daily Market Intelligence Report
Au79 Macro | December 11, 2025
Good Afternoon,
Headline: The Liquidity Spigot Just Opened (Quietly)
The Federal Reserve has officially blinked. While the headlines focus on the quarter-point rate cut, the real story—the one that matters for your portfolio—is happening in the plumbing of the financial system. They won’t call it Quantitative Easing (QE), but the restart of “Reserve Management Operation Purchases” (RMOP) to the tune of $40 billion a month is exactly that: a stealth injection of liquidity designed to keep the repo markets from freezing.
For us at Au79, this signals the transition we’ve been waiting for. We are moving from a phase of pure fiscal dominance into a synchronized phase of monetary support. The “slow river” of liquidity has begun to flow. It may not be a flood today, but it is a rising tide that will lift specific boats—specifically hard assets, tech, and crypto—over the coming quarters.
Macro Overview
The S&P 500 continues to hover near all-time highs, resilient in the face of mixed signals. The bond market, which threatened to riot just days ago, has been successfully talked off the ledge by Powell’s masterful jawboning. The 10-Year Treasury yield has cooled to ~4.13%, a critical development that gives risk assets breathing room.
Equities: Small caps (Russell 2000) are showing signs of life, attempting to break out as the “re-opening” of the liquidity tap favors interest-rate-sensitive sectors.
Volatility: The VIX remains suppressed, signaling complacency, but our internal volatility gauges suggest under-the-surface turbulence is building.
The Dollar (DXY): Trading near its long-run mean. The Fed’s move to expand the balance sheet (even quietly) is a long-term headwind for the dollar, further validating our heavy allocation to gold and digital assets.
