The US 10-year Treasury yield rose above 1.96% yesterday before easing slightly. It has not crossed 2% since July 2019; perhaps tomorrow when the January US inflation rate is released? Equity markets are holding up well, supported by good corporate results and easing energy prices. In general, markets are calmer this week. The EUR/USD exchange rate is…
French nuclear availability failed to reach the 50 GW mark once again as the restart of the Dampierre 1 reactor was postponed to 5 Feb yesterday. But the impact on spot prices was offset by expectations of a strong rebound in wind power generation which dragged DE spot prices well below neighboring countries. On the…
The combination of a further drop in Russian gas imports at Velke Kapusany (-10 mm cm/day), prospects of a drop in temperatures by the end of next week and the absence of de-escalation signs in the Russia-Ukraine conflict pushed European gas prices higher on Thursday. Gains were more limited on the far curve but strong…
Brent 1st-nearby prices are back near their recent highs, above $91.5/b, while WTI is at a 7-year high near $91/b, as the cold snap hits Texas. The Brent-WTI spread is narrowing sharply. The severe cold increases heating demand but also affects oil production and transportation in the Permian Basin, which accounts for about 40% of total…
The BoE raised its base rate by 25bp, which was expected. What was less expected was that it almost raised it by 50bp and announced that it would reduce the size of its balance sheet immediately. For its part, the ECB did not change anything, but Mrs. Lagarde’s press conference made it clear that the ECB was preparing significant…
