US NATGAS: Natural Gas End of Day Summary: Henry Hub Volatile
Henry Hub has oscillated sharply during the day, with pressure driven by strong US storage builds, while a Trump-Xi call improved sentiment in the ongoing tariff war.
- US Natgas JUL 25 down 0.3% at 3.7$/mmbtu
- US Natgas AUG 25 up 0.1% at 3.79$/mmbtu
- The EIA weekly gas inventories for the week ending May. 30 showed a build of 122 bcf.
- The seasonal five-year average shows a net build of98 bcf. Stocks built by 94 bcf this time last year.
- Total stocks are up to 2598 bcf. This is 288 bcf below levels seen a year ago and 117 above the previous five-year average of 2481 bcf.
- TRUMP ON XI TALKS: TRADE TALKS HAVE NEVER BEEN OFF TRACK" - RTRS
- *TRUMP: CHINA, US HAVE DEAL, WE WERE STRAIGHTENING OUT SOME STUFF – Bbg
- Lower 48 natural gas demand edged up 57 mmcf/d today and the highest since April 16 at 70.31 bcf/d to remain above the previous five-year average around 65.4 bcf/d, BNEF shows.
- The GFS 6z 15day has risen over 8 CDDs nationally.
- US domestic natural gas production is estimated down 88 mmcf/d on the day at 105.0 bcf/d: BNEF.
- Total feedgas flows to US LNG export terminals are holding steady at 13.39 bcf/d today, Bloomberg shows.
- European natgas demand was weaker w/w as weather conditions improved, JPMorgan said in an analyst note.
- The Energos Eskimo FSRU LNG terminal left the port of Aqaba in Jordan on June 4, according to Bloomberg ship-tracking data.
- Egypt plans to finalise some LNG purchase agreements in the coming week for delivery over the next few years, as the country deepens its dependence on imports, Bloomberg reports.
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US: FED Reverse Repo Operation
RRP usage inches up to $129.858B this afternoon from $124.690B yesterday, total number of counterparties at 34. Usage had fallen to $54.772B last Wednesday, April 16 -- lowest level since April 2021. Conversely, usage had surged to the highest level since December 31, 2024 on Monday, March 31: $399.167B.
EURGBP TECHS: Tests Key Support
- RES 4: 0.8781 2.236 proj of the Mar 3 - 11 - 28 price swing
- RES 3: 0.8768 High Nov 20 ‘23
- RES 2: 0.8624/0.8738 High Apr 21/ High Apr 11 and the bull trigger
- RES 1: 0.8557 High Apr 28
- PRICE: 0.8487 @ 16:52 BST May 6
- SUP 1: 0.8467 50-day EMA
- SUP 2: 0.8462 Low May 1
- SUP 3: 0.8415 76.4% retracement of the Mar 28 - Apr 11 rally
- SUP 4: 0.8316 Low Mar 28 and a key support
EURGBP traded lower again Tuesday and a short-term bear cycle remains in play, for now. The next support has been broken at 0.8477, a Fibonacci retracement point, below which the 50-day EMA at 0.8467 has been tested. It is still possible the move down that started Apr 11, is a correction. A clear reversal would open 0.8738, the Apr 11 high and bull trigger. First key resistance is 0.8624, the Apr 21 high.
PIPELINE: Corporate Bond Update: $5B BoA 3Pt Launched
$24.9B Corporate issuance to price Tuesday
- Date $MM Issuer (Priced *, Launch #)
- 05/06 $5B #Bank of America $2.25B 4NC3 +85, $750M 4NC3 SOFR+111, $2B 11NC10 +115
- 05/06 $2.5B #PNC $1.25B 2NC1 +75, $1B 6NC5 +100
- 05/06 $2B #Grupo Nutresa $1B 5Y 8%, $1B 10Y 9%
- 05/06 $2B #Cummins Inc $300M +50, $700M +5Y +80, $1B 10Y +100
- 05/06 $1.75B #Starbucks $750M 3Y +77, $500M 5Y +90, $500M 10Y+110
- 05/06 $1.75B #Standard Chartered $1B 6NC5 +135, $750M 6NC5 SOFR+168
- 05/06 $1.75B #Biogen $400M +5Y +115, $650M 10Y +145, $700M 30Y +165
- 05/06 $1.75B #UBS 11NC10 +128
- 05/06 $1.5B #Deutsche Bank 6NC5 +140
- 05/06 $1B #Dominion Energy 3Y +87.5
- 05/06 $750B #Gold Fields 7Y +175
- 05/06 $650M #American Homes 4 Rent 5Y +117
- 05/06 $500M #Host Hotels & Resorts 7Y +180
- 05/06 $500M #SURA Asset Mgt 7Y +230
- 05/06 $500M *Shinhan Bank 5Y +72
- 05/06 $500M #LYB Int 10Y +187
- 05/06 $500M #Eaton WNG 5Y +65
