COMMODITIES: Crude Falls Further, Precious Metals Pull Back

Released yesterday at 1400ET having been made available at last week’s FOMC meeting, the July Senior Loan Officer Opinion Survey (SLOOS) generally showed little change/a further tightening in lending standards in Q2 whilst loan demand was mixed. These are relatively small moves compared to those seen quarter-to-quarter during the pandemic and earlier in the post-pandemic period. 

• For those lending to businesses in Q2, “survey respondents reported, on balance, tighter lending standards and weaker demand for commercial and industrial (C&I) loans to firms of all sizes. Furthermore, banks generally reported tighter standards and weaker demand for commercial real estate (CRE) loans.”
• The tightening in C&I loans was most pronounced for large & medium firms as it accelerated further after a brief pause back in Q4. The 18.5% net tightening of standards was the largest since late 2023.  
• For those lending to households, “banks reported basically unchanged lending standards and weaker demand for residential mortgage loans, on balance. In addition, banks reported tighter lending standards and stronger demand for home equity lines of credit (HELOCs). For consumer loans, standards tightened for credit card loans and remained basically unchanged for auto and other consumer loans. Meanwhile, demand weakened for credit card and other consumer loans and strengthened for auto loans.”
• Respondents for commercial & industrial loans saw some of the largest moves on the quarter:

• 6,500 SFRZ5 95.68 puts, 0.75 ref 96.245 at 1408:46ET

• US Data/Speaker Calendar (prior, estimate)
• 08/06 0700 MBA Mortgage Applications (-3.8%, --)
• 08/06 1130 US Tsy $65B 17W bill auction
• 08/06 1300 US Tsy $42B 10Y Note auction (91282CNT4)
• 08/06 1400 Fed Gov Cook & Boston Fed Collins panel event (no text, Q&A)
• 08/06 1610 SF Fed Daly moderated discussion eco-summit
• Source: Bloomberg Finance L.P. / MNI