this is because a stablecoin mint/creation on-chain is the proxy for a T-bill purchase by the company issuing that stablecoin (e.g. Circle, Tether)

so stablecoin inflows proxy T-bill purchases, which raises their price and lowers the yield

Illya Gerasymchuk 2025-08-16 22:14

stablecoin inflows lower 3M Treasury bill yields, while outflows raise yields by a larger amount

LP-IV estimates:
⏩ $3.5B inflows lower yields by ≈3 bp
⏪ $3.5B outflows raise the yields by ≈8 bp

inflow = mint
outflow = redemption/burn