Micron earnings this afternoon, on the heels of yesterday’s rout
June 24, 2026
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–Curve steepened yesterday with a solid front-end bid as stocks slid. 2y yield down 4 bps to 4.19% (good auction yesterday) while tens fell 1.6 bps to 4.493%. SPX down 1.4% while NDX dropped 3.3%. Island (possible blow-off) tops in SNDK and MU, the latter of which reports this afternoon with EPS expected 20.34. MU -13.2% yest. SK Hynix expected to list a US ADR, raising $29b. (constant new funding demands in the tech world).
–On the SOFR strip near contracts led with H7 thru Z7 +5 on the day (9586, 9587.5, 9593.5, 9601). SFRH7 still the lowest near contract. H7, +5, H8 +4.5, H9 +2.5 and H0 +1.0. Not exactly a hard flight-to-quality bid, but a nod of acknowledgement. SOFR contracts out to 4 years remain clustered between 3.875% and 4.125%.
–With July treasury options falling off the board on Friday; large covered buys of TYQ 110c and 110.5c. TYQ 110c 22 paid 40k vs 109-14. 20 settle vs 109-12s, open int +48k to 138k. TYQ6 110.5c 14 paid 50k covered 109-15+, 12s with OI +35k to 130k.
–Morgan Stanley, the latest to gate redemptions on a private credit fund.
–News today includes New Home Sales, expected +3.2%. PCE prices tomorrow.
On July 14, Warsh expected to testify to House Financial Services Committee. Expect hard hitting questions on the reflecting pool.
From Ed Zitron:
That’s because their actual relevance is, in and of itself, symbolic. OpenAI and Anthropic combined to less than $20 billion in annual revenue in 2025 representing 89% of all AI startup revenues, and spent at least $30 billion on compute on Microsoft Azure, Google Cloud and Amazon Web Services. Their services are sold using the very same cargo cult mentality that got us into this mess — organizations adopting AI at scale and demanding that people use it because “AI is so powerful,” …
