REFINING: PBF Says Martinez Return Remains September

• -12,000 TYK5 111 puts, 27 vs. 111-22.5/0.35%; appr vol 6.29%

US construction spending rebounded in February after a weak January, rising 0.7% M/M (vs 0.3% expected, -0.5% prior downward rev from -0.2%). That brought nominal spending to an all-time high $2.196T (on a seasonally-adjusted, annualized basis).

• Private sector activity drove the rebound, up 0.9% M/M from -0.7% prior in what may have been a bounce from a January marred by bad weather and potentially other factors including the southern California wildfires.
• Residential construction rebounded 1.3% after -1.2%, with non-residential up 0.4% after -0.2%.
• In the subcategories, manufacturing construction has failed to regain traction after 4 consecutive negative/flat months, though at least posted 0.1% growth in February. Nonresidential ex-manufacturing construction in contrast jumped 0.5% after -0.1% prior.
• Given ongoing cost-cutting initiatives at the federal level, there will be increasing focus on public sector construction (roughly one-quarter of the national total), but no sign so far after 0.2% M/M growth for the 2nd consecutive month.
• Overall momentum remains positive for private sector construction (+4.5% 3M/3M ann), though public sector spending is waning (2.0% after double-digit growth in Q4).
• It's worth noting however that construction in manufacturing has been flagging (-2.0% 3M/3M annualized was the weakest since Nov 2020), after very strong gains in 2022-23. 

• US TSY 14D AUCTION: NON-COMP BIDS $129 MLN FROM $50.000 BLN TOTAL