Authored by Nick Cunningham via OilPrice.com,
Last week, the International Energy Agency made a lot of OPEC brows furrow when it warned that 2018 may not be a very happy new year for the cartel.
U.S. shale supply, the IEA said in its December Oil Market Report, is set to grow more than OPEC has estimated and this could be the undoing of the production cut that boosted prices this year.
Perhaps it is recency bias playing its tricks, but Treasury and Bund yields curves are steepening dramatically for the second day in a row, this time dragged higher by comments on longer-term issuance plans from Germany.
As always, German and US yield curves are moving in sync with a notable steepening again - the biggest 2-day steepening since Trump was elected.
Barring some unforeseen catastrophe (or another floor-vote surprise akin to Sen. John McCain’s last minute decision to strike down the Senate’s plan to repeal and replace Obamacare), Congressional Republicans appear all but certain to pass the reconciled version of President Donald Trump’s tax-cut plan - the first time Congress has successfully passed comprehensive tax reform since 1986.
A cryptocurrency exchange in South Korea collapsed on Tuesday after it suffered a second cyberattack in eight months and lost a large amount of its digital-currency reserves. This spooked Asian investors who sold Bitcoin (and other cryptos).
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