Market Update
US tsys slightly higher on avg volume in TY futures (312k), 10Y 2.02%, S&P futures -2, crude 58.95 (-0.14). UK gilts rallying after huge miss in June construction PMI (43.1 vs 49) – worse month in more than 10 years. German bunds fell sharply following a BB story citing ECB sources saying there is no rush for July rate cut, the June bund fell 28 ticks on to bounce 42 ticks, with prices fading since. Expectations were already for the ECB to skip the July meeting and cut in Sep. GOCs lower, ~2bps wider vs tsys, 10Y 1.48% in catchup mode after holiday yest. GOC 2s10s curve now negative, -0.4bps , flattest since 2007.
News headlines
Stocks Mixed as Investors Mull Trade; Bonds Climb: Markets Wrap (Bloomberg) U.S. equity futures slipped and European stocks edged higher after a mixed session in Asia as enthusiasm over the latest trade truce between America and China waned. The dollar drifted while Treasuries rose.
TSX futures up on higher gold prices (Reuters) Futures pointed to a higher opening for Canada’s main stock index on Tuesday, supported by rising gold prices.
Oil Steady as OPEC Pact Contends With Gloomy Economic Data (Bloomberg) Oil steadied as investors weighed OPEC’s extending output cuts into 2020 against troubling economic data from around the world.
Locked out of China, U.S. pork producers sniff out new buyers (Reuters) U.S. hog farmers lost hundreds of millions of dollars in export sales to China and Mexico after President Donald Trump launched his trade wars last year.
Australia cuts key rate for second straight month to spur growth (BNN) Australia executed its first back-to-back interest-rate cuts in seven years as policy makers attempt to provide support to a slowing economy and try to rekindle dormant inflation.
Relief rally fades as growth fears loom (Reuters) World stocks eked out meagre gains on Tuesday amid worries the global economy was faltering after data showed manufacturing activity slowed last month, weakening appetite for risk.
Trump says China trade talks ‘back on track,’ new tariffs on hold (Reuters) The United States and China agreed on Saturday to restart trade talks after President Donald Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with Beijing.
Market Overview: US 10yr note futures are up 0.086% at 127-26, S&P 500 futures are down -0.09% at 2965, Crude oil futures are down -0.25% at $58.94, Gold futures are up 0.41% at $1395, DXY is down -0.1% at 96.745, CAD/USD is down -0.12% at 0.7623.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.479% | 2 Year | 1.777% |
| 5 Year | 1.408% | 5 Year | 1.781% |
| 10 Year | 1.481% | 10 Year | 2.02% |
| 30 Year | 1.697% | 30 Year | 2.551% |
US Economic Data
There is no US economic data for today.
Canadian Economic Data
| 09:30 AM | Markit Canada Manufacturing PMI, Jun Survey: — Prior: 49.1 |
| 10:00 AM | Bloomberg Nanos Confidence, Jun 28 Survey: — Prior: 57.8 |
Disclosure and Disclaimer
The following sources of information have been, or may have been, used partially or in their entirety to compile the herein provided CTI Capital Securities Inc. (“CTI Capital”) ‘Morning Comments.’ CTI Capital believes these sources to be generally reliable, however, as said sources are varied and from third parties, CTI Capital cannot guarantee the accuracy or completeness of said information: Canadian Press (CP); Bloomberg News (BN); Wall Street Journal (WSJ); Stone & McCarthy Research Associates (SMRA); New York Times (NYT); Financial Times (FT); Market News International (MNI); Globe and Mail; Associated Press (AP); CNW Group (CNW); Reuters; Business News Network (BNN); Market Watch; and others.
Ivan Greenstein, Stephan Buu, Émile Bordeleau
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilieres Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230