Remove the limits!
June 2, 2026
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–An early Monday morning report that Iran was halting the exchange of communications with US negotiators sent oil higher, stocks and bonds lower. Treasury curve flattened to new recent lows. Two year yield up 3.9 bps to 4.049% while tens rose 2.4 to 4.473%. New low in 2/10 at 42.4 and in 5/30 at 80.6. On the SOFR strip SFRU7 was weakest, down 6.5 to 9605. SFRM7 is the lowest near contract, at 9602.5. (Near 4% one-year forward, vs 3.62% current EFFR).
–CLN6 settled 92.16, up 4.80. TYU6 settled 109-195, down 7, but USU6 was unch’d at 112-07. ESM fought back from lows and settled modestly higher. Strong Mfg ISM of 54.0 (expected 53) was also a bearish factor for rate futures. JOLTS today expected 6866k, unch’d from last.
–In a recent interview Paul Tudor Jones mentioned that the past ten years or so have seen a steady decline in equity outstanding of about 2% a year due to stock buybacks. He said the IPOs of SpaceX, Anthropic and OpenAI represented a possible reversal of this trend. Yesterday, Google jumped the line, announcing an $80 billion equity raise to fund AI (I don’t perceive Buffet as a guy who would buy at peak valuations, but Berkshire has apparently spoken for $10b). News reports that Anthropic is racing to squeeze its IPO in before OpenAI suggests a narrow window to take advantage of frothy conditions.
–Bitcoin is seeing no support from the AI bid, this morning trading below 70k… anecdotal evidence that AI is sucking the oxygen out of the room. With this backdrop, RobinHood is eliminating its PDT (Pattern Day Trading) rule. “What it means for you: We will be wiping all past PDT flags clean. Soon, customers will be able to trade on Robinhood without worrying about day trading limits again.”
https://x.com/RobinhoodApp/status/2061518610376294768
