OIL PRODUCTS: Singapore Fuel Oil Stocks Narrowly Rise to Two Week High
Aug-08 10:53
Singapore’s onshore fuel oil stockpiles narrowly rose to a two-week high, government data showed on Thursday.
- The inventories nudged up 0.88% to 19.73 million barrels in the week ended Aug. 7.
- Fuel oil inventory levels remained muted, averaging 19.4 million barrels a week in August, versus a typical weekly average of over 20 million barrels in July.
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US TSYS: Mild Bear Steepening With Powell Eyed Before 3Y Supply
Jul-09 10:52
- Treasuries have seen a mild bear steepening as the longer end trims yesterday’s second half gains.
- Fed Chair Powell headlines the session with his Senate appearance – see STIR bullet.
- 3Y supply then kickstarts the week’s triple coupon issuance with 10s tomorrow and 30s on Thursday. The 3Y auction tailed by 1.1bp in June along with its lowest bid-to-cover since December.
- Cash yields range from +0.2bp (2s) to +1.3bps (20s). 2s10s at -33.7bps (+0.8bp) is off early July high of -27.4bps but relatively elevated by recent month standards.
- TYU4 at 110-14+ (- 04+) sits within yesterday’s range off highs of 110-20+ but more broadly consolidates Friday’s payrolls-driven gains. Volumes are subdued at 215k.
- Yesterday’s latest high marks tentative resistance before a more important bull trigger at 111-01 (Jun 14 high).
- Fedspeak: VC Supervision Barr on financial inclusion (0915ET, text only), Chair Powell semiannual testimony (1000ET), text + Q&A), Gov Bowman on financial inclusion (1330ET, text + Q&A).
- Note/bond issuance: US Tsy $58B 3Y Note auction (1300ET)
- Bill issuance: US Tsy $46B 52W Bill, $70B 42D CMB Bill auctions (1130ET)
OUTLOOK: Price Signal Summary - Bull Cycle In Oil Futures Remains In Play
Jul-09 10:48
- On the commodity front, Gold traded higher last week and the yellow metal has pierced resistance at $2387.8, the Jun 7 high. This undermines a recent bearish theme and a clear break would be a bullish development and open the key resistance at $2450.1, the May 20 high. Initial support to watch lies at the 50-day EMA, at 2326.3. A clear break of this average would instead confirm a resumption of the reversal from May 20 and expose $2277.4, May 3 low.
- In the oil space, a bull cycle in WTI futures remains in play and the latest pullback appears to be a correction. The recent breach of $80.11, the May 29 high and a key resistance, strengthened a bullish theme. Note too that $82.24, 76.4% of the Apr 12 - Jun 4 bear leg, has been cleared. Furthermore, moving average studies are in a bull-mode set-up. Sights are on $85.27, the Apr 12 high and a bull trigger. Initial firm support to watch is $79.63, the 50-day EMA.
FRANCE: Prosecutors Target Le Pen Over Funding In '22 Presidential Campaign
Jul-09 10:44
Reports emerging that prosecutors in Paris are looking to target the 2022 presidential campaign of right-wing Rassemblement National (National Rally, RN) candidate Marine Le Pen over allegedly illicit financing. BFMTV reports that the case opened against Le Pen includes allegations of "[providing] a loan from a legal entity to a candidate in an election campaign; acceptance by a candidate in a campaign of a loan from a legal entity; embezzlement of property by persons holding a public [office]; fraud committed against a public person; forgery and use of forgery,"
- Le Pen and other RN figures already face going on trial in a separate case in September regarding allegations that the party diverted taxpayer-generated funds allocated to European Parliament activities towards domestic politics. Bloomberg: "The criminal case centers on suspicions that Marine Le Pen and other party members elected to the European Parliament improperly used a budget line — which has since been increased to reach nearly €30,000 ($32,409) a month — allocated to pay EU aides."
- A conviction could do significant damage to Le Pen's aim of becoming president in the 2027 election. The Mirror reports that "prosecutors are seeking ‘the additional penalty of deprivation of the right to be elected, for a maximum period of five years,’ said a source close to the case", a sentance that if handed down would rule Le Pen out of the contest.
