US 6-month Treasury auction BID-COVER RATIO 3.05 on Aug 24; prior 2.97.

Citrini Research says markets have been pricing higher defense budgets; the new tradable theme is which firms can rebuild missiles after combat has depleted inventories. Real-world fighting has exposed U.S. missile and interceptor shortages, notably for Patriot and THAAD systems. Citrini frames this as a second-stage shift: stage one—geopolitical deterioration → budget increases → defense stocks rally; stage two—weapon attrition → inventory drawdown → capacity shortfalls → governments must expand production. That expansion will drive a multi-year defense capex cycle across missile manufacturing, propulsion/engines, guidance, radar, electronic warfare, satellites, ISR and counter-UAS supply chains. Citrini cautions missile replenishment is likely a sustained capex cycle rather than a one-off war rally.

US 6-month Treasury auction as of Aug. 24: 59.64% of awards allocated at the stop-out yield, prior 18.55%.