Central bank gold leasing and swapping into the market was a deliberate carry trade where bullion banks would lease physical gold from central banks at sub-2% rates, sell it, purchase US Treasuries at 6%+ yields, and pocket the spread—a profitable strategy that has ended now that Treasury yields have collapsed.
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Speaker
Alistair MacleodEvidence Quote
“a bullion bank would lease some gold off a central bank... and sell it into the market buy u.s treasuries... the cost of leasing the gold was less than two percent and the return you're getting on us treasuries was six percent plus so this was a lovely carry trade”
Created: 8/11/2026, 1:15:22 AM
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