Heading into the North American open, WTI crude futures are trading lower after OECD cut growth
forecasts for Europe, while Iran reached an agreement that will allow the IAEA to investigate
alleged nuclear-weapons work in the Persian Gulf nation….

ASIA JGBs prices were marginally mixed across the curve, 10-yr JGBs were seen up modestly around 5
ticks at 142.25, dealers noted that a few megabanks bought 5-yr JGBs on dips in mid-afternoon
trading. Last price taken at 0635BST….

Nat Gas ended last week at a level that I do not believe is sustainable based on the current state
of the fundamentals. Nat Gas futures increased on the week while closing above the technical
resistance level of $2.733/mmbtu level….

June natural gas trended lower during the overnight and initial morning hours, as it appeared to
correct Friday’s breakout trade. The 6 to 10 day weather maps continue to forecast above normal
temperatures throughout the northeast, and that is seen driving up consumption…

The combination of one of the warmest winters (November-March) in decades and low spot natural gas
prices contributed to low wholesale electric prices at major market locations during the winter of
2011-2012 (see chart below)….

? G8 leaders backed a ?strong and cohesive? Euro-zone including Greece and committed to boosting
growth and demand. ? Fed?s Lockhart says QE3 cannot be taken off the table. ? German govt….

With a lack of major data from Europe and the US this week, focus will likely remain on the
macroeconomic difficulties facing the Eurozone as the fringe countries of Greece, Spain and
Portugal wear away any progress made in the core economies….

ASIA 10-yr JGBs were trading down 21 ticks at 143.24 with thin trading being observed, dealers
noted some regional banks had sold 10-yr JGBs in small lots. Last price taken at 0635BST….

? Market talk of asset-reallocation from fixed-income and into equities has helped lift sentiment
from the open. ? Reports that Spanish banks are pressing market regulators to reinstate a
short-selling ban on domestic financials has helped keep negative sentiment at…

Week Ending May 16, 2012
Natural gas prices remained above $2.30 per million British
thermal units (MMBtu) over the report week (Wednesday to Wednesday) at most of the country?s
trading locations. The Henry Hub price moved within a 5-cent range for much of the week before
rising sharply, closing at $2.50 per MMBtu yesterday (up 14 cents for the… Read more