The markets are now assuming the equivalent of almost 9 25bp rate hikes by the Fed by the end of the year, i.e. out of the 6 remaining meetings, 3 would see the Fed raise rates by 50bp. The extraordinary (because it really is an extreme scenario from a historical point of view) has become…
Who could have predicted such a phenomenon? Bond yields continue to rise sharply: the US 10-year has reached 2.4%. The 2-year rate is already at 2.2%, an increase of 200bp over the last 6 months and 150bp since the beginning of the year! The euro zone is not left behind, even if the prospects for monetary…
European gas prices weakened yesterday, pressured by improving spot fundamentals, as shown by storages that have switched to net injection mode for the European Union as a whole. However, some concerns remained on supply for the coming weeks (on Russian and LNG flows), reflected in lower price declines on the far curve. Note that at…
Except in France where prices inched down on expectations of weaker demand, the European power spot prices slightly rose yesterday, buoyed by forecasts of dropping wind output and lower nuclear availability. The day-ahead prices averaged 235.24€/MWh in Germany, France, Belgium and the Netherlands, +13.98€/MWh day-on-day. The carbon prices traded sideways in a narrow range yesterday…
Officially, nothing has been decided and some countries, starting with Germany, remain opposed to stopping oil imports from Russia because they have no immediate alternative. But the subject came back to the fore yesterday at the meeting of EU Foreign Ministers and the fact that it was the Lithuanian Minister who spoke in favour of such a…
