HK Stock Market Move | Gold stocks rose again, and U.S. Treasury buybacks boosted precious metals. Besant stated that a single buyback could exceed $4 billion.

Gold stocks rose again. As of the time of writing, Chifeng Jilong Gold Mining (06693) increased by 8.92%, reaching HKD 44.44; Shandong Gold Mining (01787) rose by 7.59%, to HKD 27.2; LINGBAO GOLD (03330) went up by 6.34%, to HKD 24.84; ZIJIN GOLD INTL (02259) increased by 4.86%, reaching HKD 155.5; CHINAGOLDINTL (02099) rose by 4.78%, to HKD 258.8. In terms of news, U.S. Treasury Secretary Janet Yellen has been intensively releasing policy signals. As long-term U.S. Treasury yields rise again, Yellen stated that the Treasury may conduct a single long bond buyback exceeding USD 4 billion and emphasized that the Treasury has a strong toolbox. CICC believes that the Treasury's increased buyback of U.S. debt will, on the one hand, boost demand for long-dated U.S. Treasuries and improve market liquidity, and on the other hand, weaken the creditworthiness of U.S. debt and the dollar, with gold being the most directly benefiting asset. Additionally, CITIC Futures indicated that it is not appropriate to directly extrapolate the impact of a one-time buyback as a trend of easing in the short term. The key going forward lies in whether the decline in long-term yields can be sustained and whether capital inflows can further expand. If yields rise again, gold could experience profit-taking after its sharp increase; the medium-term fiscal expansion and debt constraints still support the allocation value of gold.