OIL: How Will OPEC Respond to Iran’s Call for Action Against U.S. Sanctions?

RRP usage declines to $119.977B this afternoon from $160.219B on Tuesday. Compares to $98.356B on Friday, December 20 - the lowest level since mid-April 2021. The number of counterparties retreats to 39 from 59.

• Date $MM Issuer (Priced *, Launch #)
• 01/16 $1B #Citadel LP $500M 5Y +170, $500M 7Y +190
• 01/15 $750M #NY Life 10Y +70
• 01/15 $500M #NLG Global Funding 5Y +95
• 01/15 $Benchmark Dexia 5Y SOFR+73a
• Expected to issue Thursday:
  • 01/16 $Benchmark CABEI 3Y +75a
  • 01/16 $1B Kommuninvest WNG 3Y SOFR+37a
  • 01/16 $Benchmark CDP Financial 5Y SOFR+63a

• Speaking in a media scrum after an earlier appearance, NY Fed’s Williams (permanent voter) said Treasury yields haven’t been driven by inflation expectations and that yields instead reflect economic strength and fiscal uncertainty.
• There have been somewhat mixed views of FOMC members on long end yield drivers recently. Goolsbee (’25 voter, dove) on Friday said long-term yields reflected increased growth expectation and weren’t driven by inflation expectations as well, although Gov. Bowman (permanent voter, hawk) on Thursday saw higher inflation expectations at least in part attributing to moves. Barkin (non-voter) meanwhile last week said he saw term premium as a factor. 

Williams’ other comments focused on balance sheet policy, with the main takeaway being that reserves are still seen as being above "ample": 

• *WILLIIAMS: NOT SEEING SIGNS RESERVES FALLING TO 'AMPLE' LEVEL
• *WILLIAMS: QT NOT A FACTOR IN HIGHER TREASURY TERM PREMIUMS
• *WILLIAMS: AS RESERVES DECLINE EXPECT RRP VOLUME TO MATCH
• *WILLIAMS: NO SIGN OF DISRUPTION IN REPO MARKET, AS IN 2019
• *WILLIIAMS: NO CURRENT PLANS FOR SALES OF FED'S MBS HOLDINGS" - bbg