POWER: Norway, Poland Plan "Strategic Energy Partnership"
Norway and Poland are set to formalise a strategic energy partnership, marking a significant step in bolstering energy trade, security, and industrial cooperation between the two nations, Norwegian Prime Minister Jonas Gahr Stoere said, cited by Devdiscourse and Reuters.
- The partnership will focus on enhancing security, trade, and industrial cooperation.
- Officials from both countries will work to formalise the agreement.
- Norway, while not an EU member, currently exports gas to Poland through the Baltic Pipe.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US TSYS/SUPPLY: Preview 2Y Note Auction
Tsy futures are off this morning's lows ahead of the $69B 2Y note auction (91282CME8) at 1300ET, WI is currently running at 4.332%, 5.8bp cheap to last month's stop.
November auction recap: Treasuries resumed earlier gains after a strong 2Y auction: high yield of 4.274% vs WI 2.292% (the 1.8bp stop through is the largest since July and before that Aug 2023), bid-to-cover was 2.77x vs 2.50x in Oct and a five-auction average at 2.67x – highest since July.
Peripheral stats: Primary dealer take: 9.20% vs 17.93% in Oct and a five-auction average of 13.03% - lowest since July. Indirects take: 71.63% vs 58.23% in Oct and a five-auction average of 67.39% - highest since July.
Timing: Results for the latest 2Y note sale will be available shortly after the competitive auction close at 1300ET.
CAD: USD/CAD Well Within Range of Bull Trigger Ahead of BoC Deliberations
Despite slippage into the Friday close, USDCAD remains well toward the upper-end of the recent range, with 1.4467 the initial target ahead of 1.4508 - the 3.236 proj of the Oct 17 - Nov 1 - 6 price swing.
- Bulls remain in the driver’s seat: the recent breach of 1.4178, the Nov 26 high, confirmed a resumption of the uptrend and note that moving average studies are in a bull-mode position, highlighting a dominant uptrend.
- CAD GDP data has done little to cap USD/CAD gains today, as political uncertainty (including the building argument within the Liberal Party for Trudeau to step down as prime minister.
- BoC minutes are due later today - covering the Dec11 rate decision at which the bank cut the lending rate by 50bps to 3.25%. Key for the release could be any expansion of the communications from the closing paragraphs of the Dec policy statement; that the BoC "will be evaluating the need for further reductions in the policy rate".
BUNDS: Testing Support Amid Thin Volumes
Bunds briefly falling through near-term support in the last 30 minutes at 133.72 (Dec 19 low), with the front contract back to the worst levels seen in a month. Support now at 133.62 (Nov 22 low), then next up 133.22 (76.4% retracement of the Nov 6 - Dec 2 bull cycle).
- No clear driver for the move, which looks more Treasury-led if anything intraday, and in line with the ongoing Bund bear cycle identified by our tech analyst. That said, it comes alongside low volumes (354k RXH5) in a holiday-thinned week.
