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According to Jinse Finance, the U.S. Treasury auctioned $69 billion in two-year bonds, with a winning yield of 3.920%. The pre-auction trading level at the 11:30 a.m. New York bidding deadline was 3.925%, showing little change during the day. The market reaction to the auction results was minimal. Primary dealers were allocated 10.3%, lower than the previous auction, while direct bidders’ allocation rose to 34.4%, and indirect bidders’ allocation fell to 55.3%. The bid-to-cover ratio was 2.62, in line with the average of the previous six auctions.

According to a report from Goldman Sachs’ prime brokerage division, as of the week ending July 25, hedge funds reduced their exposure to U.S. technology, media, and telecommunications (TMT) stocks at the fastest pace since July 2024, with long positions being sold off more rapidly than short positions were covered. The data shows that most TMT sub-sectors saw risk reduction, led by semiconductors and semiconductor equipment, software, information technology services, and media stocks. The tech sector is entering the peak of earnings season, with companies such as Amazon, Apple, Meta Platforms, and Microsoft scheduled to release their results this week. “The net exposure of the semiconductor and semiconductor equipment sector as a proportion of total U.S. prime brokerage client exposure remains near a five-year high, at the 94th percentile, while the net exposure of the software and services sector is near a five-year low, at the 2nd percentile,” wrote Vincent Lin, Co-Head of Prime Insights and Analytics at Goldman Sachs, in the report.