10-Year Treasury, MLP Yield Spread Fell in the Week Ended June 24
The Alerian MLP ETF (AMLP) was trading at a yield of 9.0% at the end of the week ended June 24, 2016. The yield fell compared to the previous week.
NYMEX near-month WTI (West Texas Intermediate) crude oil futures prices fell by 0.7% in the week ended June 24, 2016.
According to data released on June 23, 2016, US crude oil production fell 0.4% in the week ended June 17.
Mont Belvieu ethane prices rose by 1.1% to $0.231 per gallon in the week ended June 24, 2016.
The Henry Hub–Mont Belvieu fractionation spread rose by 8.8% to $11.90 per barrel in the week ended June 24, 2016. It was $10.90 per barrel in the previous week.
NYMEX near-month Henry Hub natural gas futures contracts rallied for the fifth consecutive week ended June 24, 2016. Natural gas prices rose by 1.5% during the week to close at ~$2.66 per MMBtu on June 24.
At a broader level, 54.6% of analysts rate Energy Transfer Equity (ETE) as a “hold,” 36.4% rate it as a “buy,” and the remaining 9.1% rate it as a “sell.” WMB has a “hold” rating from 46.2% of analysts.
Energy Transfer Equity (ETE) can now walk away from the merger with Williams Companies (WMB). This follows a ruling in its favor announced by the merger case’s Delaware judge on Friday, June 24, 2016.
Enbridge Energy Partners (EEP) has generated a total return of nearly 3.4% since the start of 2016.
The midpoint of Enbridge Energy Partners’ 2016 DCF (distributable cash flow) guidance implies a 6.2% decline in its 2016 DCF compared to 2015.
The Alerian MLP Index (AMLP) has risen 4.8% so far in 2016. Broadly, MLP valuations have been on the rise since February 2016.
Brexit led to a 4.9% drop in near-month WTI (West Texas Intermediate) crude oil futures on Friday, June 24, 2016. Energy MLPs followed suit, and the benchmark Alerian MLP Index (AMZ) fell 3.3%.
The ten-year bond yield fell by 5 basis points to 1.6% for the week ending June 24. Ginnie Mae TBAs rose by 7 ticks. They closed at 105 30/32.
For the week ending June 24, Fannie Mae TBAs ended at 105 7/32—up four ticks for the week. The ten-year bond yield fell by 5 basis points to 1.6%.
Lately, mortgage rates and bond yields showed a weak correlation. Treasury yields fell over the past month. Mortgage rates have been steady.
After closing the prior week at 1.6%, bond yields, as tracked by the iShares 20+ Year Treasury Bond ETF (TLT), fell by 5 basis points to 1.6% last week.
We do have some important economic data this week—personal income and spending, the third revision to first quarter GDP, and construction spending.
Last week was pretty light in regards to economic data, but markets were shocked by the Brexit vote in the United Kingdom.
For next year, analysts’ median target price for Calumet is $7.5. The low and high target prices for the stock over the same period are $4.5 and $16.
About 72.7% of analysts rate Cheniere Energy a “buy,” 18.2% rate it a “hold,” and the remaining 9.1% rate it a “sell.”