LNG: Sabine Pass Pilots Suspends Service Due to Fog

Wires reporting comments from Israeli Defence Minister Yoav Gallant claiming that Hashem Safieddine, the likely successor to former Hezbollah leader Hassan Nasrallah, appears to have been killed in an IDF airstrike in Beirut last week.

• Gallant said: "Hezbollah is an organization without a head, Nasrallah has been eliminated and it appears as if his replacement has been eliminated as well."
• Gallant's comments come after Hezbollah's deputy leader gave a speech this morning downplaying the extent to which Israel's surgical strikes on Hezbollah's senior leadership has impacted the group's capacity to fight Israel's ongoing ground operation. See: SECURITY: Hezbollah Strikes Defiant Tone Amid Intensifying Conflict In Lebanon
• Gallant is expected to travel to Washington for a meeting with US Defense Secretary Lloyd Austin at the Pentagon on Wednesday to discuss the “ongoing Middle East security developments.” The Pentagon meetings are likely to focus on Israel's response to Iran's ballistic missile attack.
• Aaron David Miller, a former State Department Arab-Israeli negotiator, wrote on X: “If Gallant is due in US this week, it’s clear Israel’s response against Iran has been delayed. The complexities of escalation and the need to convince — and perhaps coordinate — Israel’s response with the US seem to be top of mind.”
• US officials told CNN today: “The US is not actively trying to revive [a ceasefire] deal and has resigned itself to trying to shape and limit Israeli operations in Lebanon and against Iran rather than halting hostilities.”
  
   

• MNI: US REDBOOK: OCT STORE SALES +5.3% V YR AGO MO
• US REDBOOK: STORE SALES +5.4% WK ENDED OCT 05 V YR AGO WK

Little to drive the latest move lower in gilts, outside of spill over from moves in core global peers.

• Incremental fresh session lows seen in futures (96.30) before a rebound back towards 96.40.
• Next support comes in at the 1.00 projection of the Sep 17-30-Oct 1 price swing (96.23), with the bearish technical trend intact.
• Yields now virtually unchanged on the day across the curve.