Spread remains below 180 points, ten-year yield falling
Declining trend for the spread between BTp and Bund on a day conditioned by expectations for the outcome of the Fed meeting. The yield differential between the benchmark ten-year BTp (Isin IT0005560948) and the German equivalent maturity is indicated at 176 basis points, a fractional decrease compared to the 178 points of the previous closure. The decline in the yield of the benchmark ten-year BTp was more clear, reaching 3.98%, from 4.01% at the closing on the day before.
Good demand and falling yields for BTp at auction
Good demand and decreasing yields for the BTp assigned at auction by the Treasury. In detail, the Treasury issued the ninth tranche of the 3-year BTp expiring 09/15/2026 for 3 billion against a request of 4.429 billion. The yield fell 51 cents to 3.24%. The seventh tranche of the 7-year BTp expiring 11/15/2030 was also placed: in the face of requests for 4.627 billion, the amount issued was equal to 3 billion while the yield, down 44 cents on last month’s auction , stood at 3.63%. The auction regulation falls on December 15th.
Oil rises sharply, after American stocks and OPEC estimates
Crude oil prices rose by 1% for both Wti January which exceeds 69 dollars a barrel for both the Brent February, in the $74 area, after data on US inventories. Last week, it fell 4.258 million barrels to 440.773 million units, according to data released by the Energy Department, versus expectations for a decline of 1.2 million. Gasoline inventories increased by 0.409 million barrels to 224.013 million barrels, against expectations for a rise of 1.9 million. Distillate inventories, which include heating fuel, rose 1.494 million barrels to 113.539 million barrels, versus estimates for a rise of 0.4 million barrels.
OPEC estimates on demand in 2024 are also encouraging, as it will grow at a “healthy” pace, heading towards a new record. This is what the Organization’s monthly report states, published on the day in which Cop28 delegates reached an agreement for the gradual elimination of fossil fuels. Next year the world will consume an average of 104.36 million barrels of oil per day, which is higher than the 102.11 in 2023. According to forecasts, demand “will grow by as much as 2.2 million barrels per day, as previously estimated”, explains the Organization. This increase will be “supported by global GDP growth”, against the backdrop of the improving economic situation in China. Gas also recovers, marking a +2.6% to 35.6 euros per Megawatt hour
Euro below 1.08 dollars, waiting for Powell
Little news on the currency front, «with movements of limited scope even if volatile in the short term with oscillations that saw prices move bilaterally between the minimums and maximums of the last sessions», observe the ActivTrades analysts. L‘euro/dollar is compressed between 1.0770 and 1.0830, to see significant reactions “we will have to wait until tonight, when Jerome Powell is expected at the press conference after the Fed’s decision”.
2023-12-13 16:46:45
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