We will continue with our patience here into July month end. However the program has warranted executing a few changes to the GFBP Positions Tracker, but before we get to that let’s check out the settlements for Monday July 27th 2020:
The bonds were bid early and the curve flat but by the end of the day the equity strength proved too much. Not to mention a new supply of $49 billion in 5yr was auctioned today and here is what Zhedge had to say about it:
Treasury sold a record $49 billion in 5Y notes at a yield of 0.288%
Lower than June's 0.33% and the lowest on record, if 0.7bps wider than the When Issued 0.281%
5y Bid to Cover slumped from 2.58 last month to 2.32 and below the 6 month average of 2.49
Indirects sliding to 58.1%, below last month's 62.3%
Directs taking down 12.3%, Dealers were left holding 29.6% of the auction
So with bond supply up today and with the dollar under attack bonds fell late in the day.
Equities were led by the Nasdaq and we can attribute this to spec play on earni…
