Morning Market Squeeze 07/07 - Tech's Leadership Fade Begins

In absolute terms, mega-cap tech leadership is a high confidence mean reversion sell, with more evidence needed for a longer-term commitment. In relative terms, however, we're more confident that, at a minimum, a multi-week period of underperformance vs. the S&P 500 is in its infancy. Here's why...

With the US ramping up coupon issuance to fund trillions in emergency programs, this week's fresh round of outsized Treasury supply kicked off with Treasury selling a record $46 billion in 3Y Treasuries at a new record low yield of just 0.190%, 9bps below

last month's 0.28% if fractionally tailing the 0.189% When Issued. We expect Treasury demand to remain robust through the remainder of this week's supply for the following reasons...

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