Week in Review 6/26/20

Down week for most equity indices with S & P 500 testing the 3000 level again.

US Initial Claims still hovering around 1.5 million for the third week in a row.

10 Yr Treasury yield drops back down as demand rises again.

FED Broad Dollar Index continues to indicate a strengthening dollar, even while M2 supply again in June.

US real estate loans tick higher on the week.

We see that the savings rate declined in the US in May, perhaps reflecting reopening economies.

Deescalation of FED asset purchases continues in the repo market, while foreign assets tick higher. Treasury purchases remain stable.

OAS spreads in credit markets have seemed to flatten out, perhaps signaling the equilibrium point of the current regime.

US Treasury curve flattens out a little more as well.

In commodities, OPEC crude wasn’t able to crest $40 a barrel. Agricultural products see price declines. The gold rally takes a breath.

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