We have had another decent week as our short bet on Utilities has started to deliver, while a continued long bet in technology (and ETH) has been the game in town in the risk asset space.

The liquidity trajectory is slightly murky over the next 2-3 weeks before a major reversal from mid-June and onwards as the net issuance pace of T-bills will be ramped up again into July tapping liquidity from the ON RRP along the way.

Unless you are of a very short-term persuasion this leaves a pretty benign environment ahead for risk assets and especially July looks to be a solid return month again. 

Chart 1: USD liquidity profile looks very solid after mid-June