NATGAS: New Drone Stirkes on Ukraine Energy Infrastructure

Aug-27 08:27

Ukrainian energy and gas transportation infrastructure was again attacked by Russian drones overnight, according to Ukrainian Energy Ministry cited by Bloomberg. 

  • Gas transit infrastructure in the central Poltava region suffered “significant damage.”
  • Energy infrastructure was also hit in the Sumy, Donetsk, Chernihiv, Kharkiv and Zaporizhzhia regions.
  • Russia and Ukraine have stepped up strikes on energy facilities against one another in recent weeks as uncertainty remains about the next steps in the peace process.
  • Energy facilities in the Poltava region and a gas pumping station in the southern Odesa region were hit earlier this month.
  • The strikes could undermine preparations for winter as Ukraine risks a gas shortage with low storage levels and amid significantly reduced domestic production.
  • Ukraine’s gas storage was 20.8% full on August 25, GIE data shows.

Historical bullets

GILTS: /STIR: Goldman Hold Long SONIA Vs Euribor, Eye On QT & Reduced Gilt Risk

Jul-28 07:53

Goldman Sachs note that “despite the previous week’s inflationary speed bump, the UK curve outperformed last week, as soggy activity data insulated gilts from bearish price action in other markets. This muted spillover points to the continuing calming in UK-specific risk premium that had been a feature of UK macro assets in recent years. As inflation risk subsides, the half-life of bouts of gilt volatility seems to be shrinking”.

  • They go on to suggest that gilts should “get additional support as the BoE slows the pace of QT from October onwards. Although the pace of active sales picks up in our forecasts, we expect the BoE to skew away from long-end sales. As a result, we maintain our constructive GBP vs EUR rates and continue to recommend long SFIZ6 vs. ERZ6”.

EQUITIES: Estoxx outright Put Buyer

Jul-28 07:47

SX5E (15th Aug) 4900p, bought for 4.70 in ~8.4k.

US TSY OPTIONS: Weekly TY Option

Jul-28 07:45

TY Weekly Option, Friday NFP Expiry:

  • TY 111p, bought for '22 in ~5.11k.