NATGAS: Ukraine Needs Gas Imports as Storage Falls: Ex Operator Head
Jan-29 13:33
Ukraine must start urgent gas imports, with Ukraine’s gas storage facilities nearing 10% capacity, says ex-head of transit operator Serhiy Makogon, Reuters reports.
- "Our storage facilities are gradually but surely approaching the level of 10% fullness," said Makogon, who led the Ukrainian state transit operator for more than three years before stepping down in 2022. GIE data shows Ukraine gas storage is around 12% full currently.
- "This will mean that we will not be able to meet gas demand through production and underground gas facilities, and we will need to import gas on an emergency basis," he said.
- Storage levels were ~20% full a year ago and 22-23% full at the same point in 2023, Makogon said.
- Roman Chumak, CEO of Naftogaz Group, said in a statement: "We are monitoring the situation with gas reserves. They will be enough for the heating season to go smoothly.”
- Data from Ukraine’s gas transmission operator shows the country is importing small amounts of gas from Hungary.
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US TSY FUTURES: Extending Highs
Dec-30 13:13
- Treasury futures continue to march higher, mirroring support in EGBs (see 0754ET bullet), otherwise no substantive headline or Block driver.
- Tsy Mar'25 10Y contract trades 108-25 last (+11) puts it back to last Monday's early range, 10y yield declining .0545 at 4.5709%.
- Curves remain mixed, 2s10s -.050 at 28.792, 5s30s +1.967 at 37.374.
STIR: Repo Reference Rates
Dec-30 13:07
- Secured Overnight Financing Rate (SOFR): 4.46% (-0.07), volume: $2.275T
- Broad General Collateral Rate (BGCR): 4.45% (-0.05), volume: $840B
- Tri-Party General Collateral Rate (TGCR): 4.45% (-0.05), volume: $803B
- (rate, volume levels reflect prior session)
EQUITIES: Futures Through the Friday Lows as Megacaps Underperform Pre-Market
Dec-30 12:59
US futures now through the Friday lows as volumes and participation pick up at the NY crossover. Move lower for stocks is coming alongside a fresh daily low in the US 10yr yield - this is the inverse of the price action we noted into the Friday close, which saw the e-mini S&P drop ~80 points as the US 10y yield added ~5bps.
- An early underperformer amid single stocks had been Boeing - which traded lower by as much as 9% in pre-market trade this morning - but has since trimmed the losses to around 2%. Megacap names are underperforming ahead of the bell (as had been the case last week): Tesla lower by 1.9%, NVidia -0.9%, Apple -0.8%, Meta -0.8%.
- Today's marks one of the last full session of the year for equity markets - so rebalancing flows could prove dominant, estimates of which vary but some notable names see over $20bln of US equities to be sold from US pension funds in order to rebalance against the December price action - a sizeable flow when compared to historicals.
