Connect with us

Markets

Yields on Australian Debt Added Three Basis Points

Published

on

Australia ASX

Australian bonds tracked a retreat in Treasuries as investors focused on the likelihood of a Federal Reserve interest-rate hike this week. Index futures signaled a mixed picture for Asia after a late-in-the-day rally in U.S. stocks as crude oil rebounded.

Government debt of Australia and New Zealand pared back some of Monday’s gains after 10-year Treasury yields rallied from near a six-week low, with traders continuing to price in odds above 75 percent of the Fed boosting borrowing costs on Wednesday. While Hong Kong stock futures foreshadowed declines, contracts on Australian and South Korean benchmarks advanced following the Standard & Poor’s 500 Index’s rebound from a two-month low. U.S. crude closed higher after sliding below $35 a barrel.

“Markets remain nervous,” Philip Borkin, a senior economist in Auckland at ANZ Bank New Zealand Ltd. said in a note to clients. “Like equities, bond markets appeared to follow oil prices movements although moves were reasonably violent.”

A sense of unease prevails in global financial markets as investors start counting down to Wednesday’s Fed meeting, where U.S. policy makers are expected to end a seven-year era of near-zero borrowing costs. Weakness in high-risk credit markets has sparked fear of contagion, unsettling markets along with the gyrations in crude oil ahead of one of the most anticipated Fed decisions of the year. Australia’s central bank releases minutes of its December meeting Tuesday, with an update on U.S. consumer prices also due.

Bonds

Yields on Australian debt due in a decade added three basis points, or 0.03 percentage point, to 2.85 percent, as rates on similar-maturity New Zealand sovereign notes climbed the same amount to 3.56 percent.

Concerns over the junk bond market were overshadowed Monday by expectations of a Fed rate hike, weighing on Treasuries. Ten-year U.S. yields rose by nine basis points to 2.22 percent after slipping 10 basis points on Friday amid a global equity selloff.

The S&P 500 ended last session up 0.5 percent as energy stocks erased their declines amid a 1.9 percent increase in U.S. oil. West Texas Intermediate crude rose to $36.31 a barrel after earlier on Monday sliding to as low as $34.53.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Commodities

Nigeria’s Petrol Imports Decrease by 1 Billion Litres Following Subsidy Removal

Published

on

Ship Aveon Offshore

Nigeria’s monthly petrol imports declined by approximately 1 billion litres following the fuel subsidy removal by President Bola Ahmed Tinubu, the National Bureau of Statistics (NBS) reported.

The NBS findings illuminate the tangible effects of this policy shift on the country’s petroleum importation dynamics.

Prior to the subsidy removal, the NBS report delineated a consistent pattern of petrol imports with quantities ranging between 1.91 billion and 2.29 billion litres from March to May 2023.

However, in the aftermath of Tinubu’s decision, the nation witnessed a notable downturn in petrol imports, with figures plummeting to 1.64 billion litres in June, the first post-subsidy month.

This downward trend persisted in subsequent months, with July recording a further reduction to 1.45 billion litres and August witnessing a significant decline to 1.09 billion litres.

August’s import figures represented a decrease of over 1 billion litres compared to the corresponding period in 2022.

The NBS report underscores the pivotal role of the subsidy removal in reshaping Nigeria’s petrol import landscape with the Nigerian National Petroleum Company emerging as the sole importer of fuel in the current scenario.

Despite higher petrol imports in the first half of 2023 compared to the previous year, the decline in June, July, and August underscores the profound impact of subsidy removal on import dynamics, affirming the NBS’s latest findings.

Continue Reading

Crude Oil

Nigeria’s Oil Rig Count Soars From 11 to 30, Says NUPRC CEO

Published

on

Nigeria oil rig

The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has announced a surge in the country’s oil rig count.

Komolafe disclosed that Nigeria’s oil rigs have escalated from 11 to 30, a substantial increase since 2011.

Attributing this surge to concerted efforts by NUPRC and other governmental stakeholders, Komolafe highlighted the importance of instilling confidence, certainty, and predictability in the oil and gas industry.

He explained the pivotal role of the recently implemented Petroleum Industry Act (PIA), which has spurred significant capital expenditure amounting to billions of dollars over the past two and a half years.

Speaking in Lagos after receiving The Sun Award, Komolafe underscored the effective discharge of NUPRC’s statutory mandate, which has contributed to the success stories witnessed in the sector.

The surge in Nigeria’s oil rig count signifies a tangible measure of vibrant activities within the upstream oil and gas sector, reflecting increased drilling activity and heightened industry dynamism.

Also, Komolafe noted that NUPRC has issued over 17 regulations aimed at enhancing certainty and predictability in industry operations, aligning with the objectives outlined in the PIA.

Continue Reading

Crude Oil

Oil Prices Rebound in Asian Markets Amid Red Sea Shipping Concerns

Published

on

Crude Oil - Investors King

Amid escalating attacks on shipping in the Red Sea and growing uncertainty regarding U.S. interest rate cuts, oil prices rebounded in Asian markets today.

Brent crude oil, against which Nigerian oil is priced, climbed by 24 cents to $82.58 a barrel while the U.S. West Texas Intermediate crude oil (WTI) rose by 21 cents to $77.25.

The rebound comes after both Brent and WTI contracts experienced a 1.5% and 1.4% decline, respectively, from their near three-week highs on Tuesday.

This decline occurred as the premium for prompt U.S. crude futures to the second-month contract widened to $1.71 a barrel, its widest level in approximately four months.

However, on Wednesday, the premiums slid to 4 cents a barrel.

Analysts suggest that oil futures have entered a relatively range-bound phase, with current prices reflecting a risk premium of $6-7 per barrel.

The situation could persist until the next significant development in the Gaza crisis, whether it involves a de-escalation through a ceasefire or a further intensification of the conflict.

Recent attacks on vessels in the Red Sea and Bab al-Mandab strait by Yemen’s Iran-aligned Houthis have heightened concerns over freight flows through these critical waterways.

Moreover, Washington’s veto of a draft UN Security Council resolution on the Israel-Hamas war has added to geopolitical tensions impacting oil markets.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending