US NATGAS: Natural Gas End of Day Summary: Henry Hub Drops
Jan-02 18:59
Natural gas futures fell slightly overall today in trading as warmer weather approaches the East Coast
- FEB 26 is trading at $3.634, down 1.41% on the day.
- MAR 26 is trading at $3.064, down 2.11% on the day.
- Intraday front month volume on NYMEX is about 106,000 lots.
- MNI feedgas data show demand today at 18.77 Bcf/d, trending above the 30-day moving average.
- BNEF estimates lower 48 dry gas production at 109.98 Bcf/d, down from the previous day of 112.01 Bcf/d.
- U.S. dry gas consumption is estimated at 101.19 Bcf/d, down from the previous day of 104.26 Bcf/d.
- Pipeline exports to Mexico were estimated at 3.84 Bcf/d, down from the previous day of 5.52 Bcf/d.
- The US became the first country to export more than 100 MTPA of LNG in 2025 after a 24% increase in export liquefaction capacity, according to Reuters.
- The Shell-led 14 mtpa LNG Canada plant in Kitimat, British Columbia, resumed LNG exports following a shutdown earlier this month, with a cargo departing from the terminal late on Dec. 30, according to vessel tracking from Kpler.
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MNI EXCLUSIVE: MNI INTERVIEW: ISM Services Will Continue To See Improvement
Dec-03 18:59
Institute for Supply Management's Steve Miller discusses the U.S. service sector outlook. -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com.
US TSY OPTIONS: Large Way-Out-of-Money 30Y Midcurve Put Buy
Dec-03 18:41
- File under patently absurd low-delta 30Y put trade:
- 84,361 wk2 30Y 106 puts trade on screen at cab-7
- The 10 handle out-of-the-money option expires next week Friday - after the final FOMC of 2025. while markets are widely anticipating a 25bp rate cut on December 10.
- Most likely a hedge vs some short term balance sheet risk that corresponds to a rise in 30Y yield to (rough) appr 5.48% from current yield of 4.73%. (Two caveats: bond cheapest to deliver will change to a higher duration bond most likely; the duration on US 30y cash and USH prob ably won't shift in parallel.)
- There has been a rise in low delta option trades - Treasury & SOFR - on both sides of the curve over the last few sessions. SOFR has seen rise of par (100 strike) and above call options in midcurves targeting early 2026.
FED: FT Echoes Fox’s Gasparino On Wall Street Warnings Of Hassett As Fed Chair
Dec-03 18:30
- The FT has run a report saying bond investors warned US Treasury over picking Kevin Hassett as Fed chair in November.
- It builds on reporting from Fox Business’ Gasparino earlier saying there has been a last ditch effort by Wall Street and corporate America insiders to caution Trump on Hassett (as we noted in US: Wall Street Cautions Trump Against Hassett As Fed Chair – Gasparino at 1124ET).
- Of course, Trump has since explicitly floated the idea of Hassett as Fed Chair in remarks yesterday which has seen Hassett currently at 81% likelihood of being Trump’s pick on Polymarket.
See the FT report in full, here: https://www.ft.com/content/ad4bfd8b-a0f8-4f9e-a234-eed589e3d0ab
- Two short excerpts: "Bond investors have told the US Treasury they are concerned about Kevin Hassett’s potential appointment as Federal Reserve chair, worrying he will cut interest rates aggressively to please President Donald Trump.
- The Treasury department solicited feedback on Hassett and other candidates in one-on-one conversations with executives at major Wall Street banks, asset management giants and other big players in the US debt market, according to several people familiar with the conversations."
