POWER: Ukraine Reduces Nuclear Output After Latest Missile Attacks
The International Atomic Energy Agency (IAEA) said on Sunday that most of the nuclear reactors under Ukrainian control reduced generation levels after the massive attack Sunday morning by Russia against the Ukrainian energy infrastructure.
- Two of nine reactors are generation at full capacity, with the six other reactors reduced capacity by 40-90% and one reactor is fully shut down, IAEA director general, Rafael Mariano Grossi, said.
- Russia launched an attack with 120 missiles and 90 drones on Sunday morning on Ukraine’s energy infrastructure, the Ukrainian Energy Ministry reported, cited by Reuters.
- DTEK reported the introduction of emergency blackouts by Ukrenergo in Kiev and the eponymous region, as well as in Donetsk and Dnipropetrovsk regions.
- The Spanish Foreign Minister, José Manuel Albares, said Sunday via X: "We condemn the Russian bombardments on Ukraine that have claimed innocent lives and left a large part of the country without electricity and running water.”
- Slovakia’s SEPS said on 3 January that it will continue supplying electricity to Ukraine as part of an emergency supplies, despite threats from Slovak Prime Minister Roberto Fico, the iRozhlas media outlet reported, cited by Kiev Independent.
- The firm said it is panning to supply back-up power as part of a contract with Ukrenergo that is valid until this spring. Under the contract, SEPS can supply Ukraine with up to 150MW of emergency power, iRozhlas reported.
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MNI UST Issuance Deep Dive: Dec 2024 (2/2)
Throughout November’s policy and market volatility, though, Treasury auctions largely impressed, with 5 of 7 nominal coupon sales trading through.
- Auction Results: November’s nominal coupon auctions were generally strong, with five out of seven auctions trading-through, of which four saw a positive reading on MNI’s Relative Strength Indicator (RSI). The remaining two auctions; 3 and 20-year auctions tailed. See page 2.
- Upcoming Supply: Issuance resumes next week with sales of $58B in 3Y Note, $39B in 10Y Note (reopen), and $22B in 30Y Bond (reopen). December is set to see $15B in nominal Treasury coupon sales, in addition to $22B in 5Y TIPS and $28B FRN for a total of $365B – slightly below the Oct and Nov totals of $369B which were joint-highest since Oct 2021.
- MNI's review includes a calendar of upcoming auctions and buyback operations.
US TSYS/SUPPLY: MNI UST Issuance Deep Dive: Dec 2024 (1/2)
MNI's latest US Treasury Issuance Deep Dive has just been published (PDF link here):
November proved a dramatic month for Treasuries. Yields were volatile before and after the Nov 5 election - after ending October at 4.28%, 10Y yields peaked at five-and-a-half-month high just above 4.50% mid-month before closing November just below 4.18%, as markets attempted to price in the implications of a Republican “sweep”.
- Also buffeting rates was speculation over the would-be successor to Treasury Secretary Yellen. President-elect Trump’s selection of hedge fund manager Scott Bessent was greeted with bull flattening in the curve, implying perhaps that he’s seen as more cautious on fiscal deficits than some of the alternatives (he has expressed support for halving the annual budget shortfall to 3% of GDP).
- The first quarterly Refunding process of Bessent’s Treasury is in early February, by which point we may start to have a better sense of the incoming administration’s approach to both fiscal policy and to more issuance-specific considerations such as duration management.
- Bessent for instance has argued that Yellen’s Treasury erred from a risk management perspective by boosting short-duration issuance, and there are suggestions he would be in favor of reversing course, telling Bloomberg in June “When rates are very low, you should extend duration…I think it’s very unfortunate what Secretary Yellen’s doing. She’s financing at the front end, and she’s making a bet on the carry trade, which is not good risk management.”
US LABOR MARKET: MNI US Employment Insight: Soft Enough To Keep Fed Cutting
Our latest Employment Insight has just been published and emailed to subscribers.
