Market Update
Tsys trading slightly weaker on below avg TY volume (266k), yields 1-1.5bps higher 10Y 2.70%. Stock futures unch after somewhat volatile session . US data releases include Nov Factory orders (delayed due to shutdown) and Durable Goods. The US treasury auctions $23bln in 3Y notes tomorrow, followed by $40bln in 10 & 30Y bonds Wed & Thurs. GOCs trading lower, 1bp tighter vs tsys, 10Y 1.96%. Light weeks in terms of Cdn data with Jan Employment the highlight on Friday ( -19k exp). Wells Fargo issued $1bln in 5Y maples Friday @132 (5-7bp conc) which broke 4bps tigher – we are 128.5bid for $2mm
News headlines
World stocks muted, dollar firms on fading U.S. job’s bounce (Reuters) World stocks clung to near two-month highs on Monday, with the dollar strengthening and oil prices racing to a 2019 peak, though some European bourses struggled as momentum provided by U.S. employment and manufacturing data started to fade.
Futures eke out gains ahead of Alphabet results (Reuters) U.S. stock index futures were subdued on Monday following a strong jobs report which highlighted strength in the domestic economy, while investors waited for Alphabet’s earnings following a mixed bag of results from other FAANG stocks.
CANADA STOCKS-Futures signal flat opening for TSX (Reuters) Futures for Canada’s main stock index were little changed on Monday after rising nearly 1 percent last week.
Dollar stands tall as other currencies struggle (Reuters) The dollar snapped a two-week losing streak on Monday as strong U.S. jobs data fueled demand while other currencies were trapped in narrow ranges.
Oil Holds Near 2-Month High on Venezuela Risk, Lower OPEC Output (Bloomberg) Oil held gains near a two-month high after data showed U.S. production growth slowing at a time when OPEC cuts and American sanctions on Venezuela have already eased concerns over a supply glut.
Trump Threatens to Bust Border Deal as Shutdown Deadline Nears (Bloomberg) Congress has only a few days left to come up with an agreement on border security spending to prevent a government shutdown and may yet see the process upended once President Donald Trump delivers his State of the Union address on Tuesday.
Germany facing big budget hole as economy slows: finance ministry document (Reuters) Germany is facing a budget shortfall of around 25 billion euros ($28.62 billion) by 2023 as an economic slowdown means tax revenues will come in below previous estimates, a Finance Ministry document obtained by Reuters showed.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.833% | 2 Year | 2.516% |
| 5 Year | 1.861% | 5 Year | 2.517% |
| 10 Year | 1.959% | 10 Year | 2.697% |
| 30 Year | 2.186% | 30 Year | 3.038% |
US Economic Data
| 10:00 AM | Factory Orders, Nov Surv 0.3% Prior -2.1% |
| Durable Goods Orders, Nov F Surv 1.5% Prior 0.8% | |
| Durables Ex Transportation, Nov F Surv 0.1% Prior -0.3% | |
| Cap Goods Orders Nondef Ex Air, Nov F Surv 0.1% Prior -0.6% | |
| Cap Goods Ship Nondef Ex Air, Nov F Surv 0.1% Prior -0.1% |
Canadian Economic Data
| 10:00 AM | Bloomberg Nanos Confidence, Feb 1 Prior 54.4 |
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