Rates: Stimulus checks are on their way. As the US Treasury withdraws cash from its account at the Fed, it moves liquidity into the private sector.
As a result, short-term rates have drifted into negative territory.
Overnight GC repo rate (5-day moving average):
Treasury bill yields (the 3-month bill is now negative):
Equities: The average amount of time that US investors hold onto a given position is approaching an all-time low.
Energy: US oil production is expected to recover significantly by the end of the year.
Emerging Markets: Turkey’s central bank hiked rates by 200 bps (the market expected 100 bps).
The lira surged.
United States: Higher mortgage rates are expected to cool US housing activity.
Food For Thought: Is a third political party needed in the US?
Edited by Daniel Moskovits
Contact the Daily Shot Editor: Editor@DailyShotLetter.com