LNG: Russian LNG Will Find New Markets After EU Ban: Novatek
Oct-30 12:16
Russia’s LNG will find other markets after the EU bans imports from 2027, Novatek’s CEO said, cited by Bloomberg.
- He said that the EU ban will lead to “unprecedented price hikes, and the European consumer will pay most,”
- While Novatek, Russia’s largest LNG producer, is not itself hit by US sanctions, all its future LNG projects as well as Arctic LNG 2 are sanctioned.
- Arctic LNG 2 has seen cargoes flow to China despite the sanctions, with 12 cargoes arriving since late August.
- By 2050, the world will need a further 300m mtpa of LNG, Novatek said, which he claimed can only be provided by the US, Qatar, and Russia.
- “It’s impossible to meet the future demand growth without Arctic reserves, and most of them are located in Russia,” he said.
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EGB FUNDING UPDATE: Portugal confirms no auctions likely in Q4
Sep-30 12:13
- Portugal has confirmed that it has completed its 2025 funding needs and that there is no further bond issuance planned for the year. However, "IGCP may still consider outright or exchange/buyback auctions in order to ensure the efficient functioning of the market, sustain investor engagement along the different segments of the curve, and promote liquidity across the PGB curve."
- MNI would be surprised if we don't see at least one exchange auction in the quarter.
- "Net issuance of Treasury Bills will decrease from the 3rd quarter estimate of EUR 4.6 billion to a projected amount of net issuance of EUR 2.7 billion in 2025."
- There will be just one bill auction date (19 November) with E1.00-1.25bln (combined) of the 6-month May 22, 2026 BT on offer alongside the new 12-month Nov 20, 2026 BT.
BONDS: Firmer As Crude Softens On Latest OPEC+ Headlines
Sep-30 12:07
Weakness in crude oil futures, after a delegate told BBG that OPEC+ is set to discuss fast tracking a ~500K bpd/month increase in crude production across 3 months (totaling ~1.66mln bpd), provides support to wider core global FI markets in recent trade. With Bunds unreactive to the German national CPI data, which delivered the upside surprises that we flagged on the back of the regional level data.
STIR: Repo Reference Rates
Sep-30 12:03
- Secured Overnight Financing Rate (SOFR): 4.13% (-0.03), volume: $2.893T
- Broad General Collateral Rate (BGCR): 4.12% (-0.02), volume: $1.146T
- Tri-Party General Collateral Rate (TCR): 4.12% (-0.02), volume: $1.110T
- (rate, volume levels reflect prior session)
