NATGAS: Germany Requests to Be Exempt from EU Gas Storage Target

Feb-13 13:02

Germany is requesting to be exempt from the EU’s gas storage filling targets this year, representatives stated in a meeting of the Gas Coordination Group, according to Bloomberg. 

  • Traders’ expectation is that the EU will ensure that member states will reach the current target. Germany urges the bloc to damp these expectations, the sources added, which is likely to offer some relief to EU gas prices.
  • Other countries that seem supportive of relaxing the targets are France, the Czech Republic, Italy, Austria, Denmark, Spain and Greece according to the sources.
  • A group of European nations has been pushing the European Commission this week to allow more flexibility on this year’s gas storage targets, with at least six countries in support of relaxing this year’s target, Bloomberg reported previously.
  • This is adding to separate discussions about increasing flexibility of reaching targets in future years.
  • The EC said that sufficient flexibility was already in place, which allows for a 5% deviation from intermediary targets, while the 90% full requirements can be extended by one month.
  • The current EU target aims inventories to reach 90% by 1 November. 

Historical bullets

STIR: Repo Reference Rates

Jan-14 13:01
  • Secured Overnight Financing Rate (SOFR): 4.29% (-0.01), volume: $2.211T
  • Broad General Collateral Rate (BGCR): 4.28% (-0.01), volume: $852B
  • Tri-Party General Collateral Rate (TGCR): 4.28% (-0.01), volume: $837B
  • (rate, volume levels reflect prior session)

US TSYS: Early SOFR/Treasury Option Roundup

Jan-14 12:43

Mixed SOFR/Treasury options flow reported overnight, leaning towards downside put structures in the lead up to this morning's PPI data. Underlying futures modestly firmer but scaling off of early London session highs. Projected rate cuts through mid-2025 continue to retreat, current vs. late Friday levels* as follows: Jan'25 steady at -0.7bp, Mar'25 steady at -4.9bp, May'25 -9.0bp (-8.4bp), Jun'25 -16.5bp (-16.3bp), Jul'25 steady at -18.7bp.

  • SOFR Options:
    • 3,200 SFRJ5 95.62/95.75/95.81/95.88 broken put condors
    • 3,200 SFRU5 95.87 puts vs. 95.87/96.12 call spds 
    • 7,000 SFRJ5 95.50/95.56 put spds ref 95.835
    • 2,000 SFRM5 95.37/95.62 put spds ref 95.835
    • -3,500 SFRU5 95.00/95.75 2x1 put spds, 12.0 ref 95.885
  • Treasury Options:
    • 1,100 USJ5 110/112/114 put flys
    • 2,250 FVG5 106.25/106.75/107.50 broken call flys
    • 2,000 TYJ5 107/107.5 put spds ref 107-14
    • 4,500 TYG5 107 puts
    • +10,000 TYG5 108 calls, 16 vs. 107-15/0.32%

EGB SYNDICATION: 10-year GGB: Final terms

Jan-14 12:29
  • Spread set earlier at MS+102bp (guidance was MS+107bps area)
  • Size: E4bln (top of the E3-4bln range MNI expected)
  • Books in excess of E40.5bln (inc JLM interest)
  • Maturity: 15 June 2035
  • Settlement: 21 January, 2025 (T+5)
  • ISIN: GR0124041758

Via Bloomberg / market source