OIL: New US sanctions on Iran’s oil a Blow to China's Sinopec: Reuters
Oct-10 13:07
The latest US sanctions on Iranian oil exports have hit Chinese refining giant Sinopec by targeting a terminal that handles around one-fifth of its crude oil imports, sources told Reuters.
- The measures, announced ahead of planned talks between Presidents Donald Trump and Xi Jinping, further strain US-China relations and aim to curb Iran’s oil trade with its largest buyer.
- Among the sanctioned entities is Rizhao Shihua Crude Oil Terminal, located in Shandong province and half-owned by a Sinopec logistics subsidiary.
- The terminal, capable of servicing VLCCs, was designated for handling Iranian oil shipments on sanctioned vessels, according to the US Treasury.
- The sanctions affect one of Shandong’s key crude hubs, which processes large volumes for Sinopec refineries linked by pipeline.
- Analysts warn of short-term disruptions and diversions to other Chinese ports. Freight rates on the Mideast-China route rose amid concerns over congestion and discharge delays.
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STIR: Effective Fed Funds Rate
Sep-10 13:03
- FRBNY EFFR for prior session:
- Daily Effective Fed Funds Rate: 4.33% (+0.00), volume: $112B
- Daily Overnight Bank Funding Rate: 4.33% (+0.00), volume: $208B
- Earlier Repo Reference Rates
- Secured Overnight Financing Rate (SOFR): 4.40% (+0.00), volume: $2.863T
- Broad General Collateral Rate (BGCR): 4.38% (-0.01), volume: $1.143T
- Tri-Party General Collateral Rate (TCR): 4.38% (-0.01), volume: $1.114T
- (rate, volume levels reflect prior session)
STIR FUTURES: BLOCK: Sep'25 SOFR Futures Sale
Sep-10 12:53
- -15,000 SFRU5 95.9725, post time bid at 0844:21ET
STIR: Dovish Adjustment In Fed Pricing After PPI
Sep-10 12:46
Dovish repricing in the U.S. front end in the wake of the inline to softer-than-expected PPI release.
- FOMC-dated OIS now shoes 27.5bp of easing for this month (~10% odds of a 50bp cut), with a cumulative 46.5bp showing through October and 68.5bp of easing priced through December.
- Contracts 0.5-1.5bp more dovish vs. pre-data levels.
- SOFR-implied terminal rate pricing 2.88% vs. 2.93% heading into the data and post data extremes of 2.855%.
- Our macro team notes that the short answer for why PPI was so much softer than expected in August was the final demand trade services category, which as we noted in our preview is extremely volatile and prone to revisions.
- It's also why "core" PPI - which excludes trade as well as food/energy - was in line with expectations at +0.3% M/M. More to come shortly, but from the report, basically the categories that jumped in July causing so much concern reversed in August.
