Energy: Crude oil is under pressure again as stockpiles approach physical storage capacity globally. June WTI futures are nearing $11/bbl.
Will inventories exceed maximum available storage capacity?
Commodities: Processing plant closures continue to wreak havoc on US meat markets.
Meat processing margins have spiked.
Equities: Hedge funds are positioned extremely defensively, which has provided support for the rally.
Credit: Banks’ holdings of “safe” assets have been elevated over the past decade.
Since the start of the crisis, banks reduced their holdings of Treasuries (selling them to the Fed) …
… and increased their cash balances (the Fed credited their reserve accounts).
Rates: Here is a summary of the Fed’s new credit facilities intended to maintain the flow of credit to the US economy. Utilization has been low thus far, but the Fed is expected to ramp these up.
General-collateral repo rates are now negative as the Fed floods the market with liquidity.
Food for Thought: Support for the government’s expanding role:
Edited by Devon Lall
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