EMISSIONS: UK Climate Committee to Advice Gov on Carbon Budget on 26 March

Feb-21 12:17

The Climate Change Committee (CCC) will publish its advice on the UK’s seventh Carbon Budget (CB7) on 26 March, setting the country’s GHG emissions targets for the years 2038 to 2042, according to the Guardian.

  • The previous budget, the sixth carbon budget, was set in 2021 at 965mn tons CO2e for the period 2033-2037.
  • The CCC’s advice on the level of the new budget will be consistent with trajectories for reaching net zero emissions by 2050 and will be aligned with targets under the Paris Climate Agreement.
  • The budget will include emissions from international aviation and shipping.
  • The CCC will also prepare advice on the UK’s 2035 NDC.
  • The Committee is likely to warn the UK that the country is falling behind on its climate targets according to Bloomberg.
  • The new carbon budget is due to be set by the government in 2025 and must be set by June 2026.

Historical bullets

EURIBOR OPTIONS: Call Fly buyer

Jan-22 12:11

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US DATA: MBA Applications Hold Bounce But Still Depressed

Jan-22 12:08
  • MBA composite mortgage applications increased 0.1% last week (sa) to consolidate the 33% jump the week prior.
  • This consolidation is reflected by both new purchases (0.6% after 26.9%) and refis (-2.9% after 43.5%).
  • The 30Y mortgage rate dipped 7bps to 7.02% after the 7.09% the prior week marked its highest since Mar 2024.
  • The increase in applications has been impressive considering the climb in mortgage rates from a recent low of 6.13% in late September, although composite applications are still only 48% of 2019 averages (new purchases 63%, refis 32%).
  • Within the details, the regular to jumbo spread held its push higher at 4bps, having last week seen the regular rate push above the jumbo rate for the first time since Nov 2023. 
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OPTIONS: Larger FX Option Pipeline

Jan-22 12:07
  • EUR/USD: Jan23 $1.0295-00(E2.7bln), $1.0400(E1.8bln), $1.0435-40(E1.0bln); Jan24 $1.0350(E1.4bln
  • USD/JPY: Jan23 Y155.00($1.6bln); Jan27 Y155.95-00($1.3bln)
  • AUD/USD: Jan23 $0.6200-05(A$1.8bln), $0.6300(A$1.0bln)
  • NZD/USD: Jan23 $0.5660-75(N$1.0bln)
  • USD/CAD: Jan23 C$1.4450($1.1bln); Jan24 C$1.4380($1.4bln), C$1.4500($1.6bln)
  • USD/CNY: Jan23 Cny7.5000($1.9bln); Jan24 Cny7.4500($1.4bln); Jan27 Cny7.6000($2.1bln)