NATGAS: Mexico’s Gov Calls for 50% Increase in Natgas Output by 2030

Bank of America note that “the USD has picked up in 2025 where 2024 left off - rallying on the dual themes of uncertainty over tariffs and the potential data-induced end to the Fed's cutting cycle.”

• “We expect the Fed is most likely done, which for now remains USD supportive, but what next? If (limited) history is any guide, past "mid-cycle adjustments" have tended to be USD positive, but none occurred at such lofty USD valuations.”
• “Talk of Fed hikes is likely to come but still feels premature to us.”
• “Meanwhile, the USD's support comes despite the opposite move in rate differentials. A possible warning sign? As we have been noting, positioning is crowded and FX sentiment is increasingly consensus, exposing asymmetric risks. “
• They continue to see “near-term USD upside risks but maintain the view that the USD will moderate around mid-year once U.S. economic policy choices become clearer.”

• GBP250.0mln had been available.
• This leaves GBP13.933bln of the linker in issue.

• 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)