Market Update

US tsys trading higher on above ag volume (400k TY futures), 10Y 1.83(-2.7bps). Fed Evans saying inflation has undershot Fed’s 2.0% goal, neutral rate may be around 2.0% in interview with BN. UK gilts higher, 10Y gilt/bund spread 3bps tighter with bunds unch – UK PM Johnson launched his election campaign promising to get Brexit done. GOCs higher, seeing some outperformance in GOCs vs tsys in the rally. Active day in corps yest $1.7bln across three issues – Capital Power long 10Y @ 281, Ford 5Y @ 285 and dual tranche Ventas deal, FRN & 4.5Y fixed.   CPXCN looked 15-20 cheap , while Ford was closer to a 20-30 bp concession based on the Ford CAD curve, with the USD 5Y ( 4.063%/24) swapping back to CAD at ~260.

News headlines

Stocks Drift Amid Mixed Earnings; Treasuries Rise: Markets Wrap (Bloomberg) U.S. equity-index futures struggled for traction alongside stocks in Europe and Asia as a raft of corporate earnings and economic data muddied the outlook for global growth. Treasuries rose after dropping for three days.

TSX futures tread water, eye trade developments (Reuters) Futures for Canada’s main stock index were steady on Wednesday, as investors awaited more clarity on U.S.-China trade developments.

Oil Slips From Six-Week High on Signs U.S. Supplies Rose Again (Bloomberg) Oil retreated from a six-week high as signs of another increase in U.S. crude reaffirmed the prevailing view that global markets are comfortably supplied.

China to resume imports of Canadian beef and pork (Reuters) China will resume imports of Canadian beef and pork, Prime Minister Justin Trudeau said on Tuesday, some four months after Beijing blocked shipments amid an escalating diplomatic feud between the two countries.

Investors left exposed as Trump’s SEC gives America Inc a helping hand (Reuters) The United States’ top market cop is slowly taking the shackles off corporations.

China and France sign deals worth $15 billion during Macron’s visit (Reuters) China and France signed contracts totaling $15 billion during a visit by President Emmanuel Macron, a Chinese government official told a news briefing on Wednesday.

EU, China agree to protect 100 of each other’s regional foods (Reuters) The European Union and China have agreed to protect 100 European regional food designations, known as geographical indications (GI), in China and 100 Chinese geographical indications in the EU, the EU Commission said on Wednesday.

Ontario, Quebec to see budgets improve as Alberta struggles (BNN) As Alberta’s finances worsen, Ontario’s and Quebec’s are poised to only get better, underscoring the changing fortunes and increasing tensions in the Canadian federation.

Market Overview: US 10yr note futures are up 0.17% at 129-05, S&P 500 futures are up 0.07% at 3074.25, Crude oil futures are down -0.4% at $57, Gold futures are up 0.2% at $1486.7, DXY is down -0.18% at 97.808, CAD/USD is up 0.11% at 0.7594.

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.622% 2 Year 1.599%
5 Year 1.582% 5 Year 1.641%
10 Year 1.589% 10 Year 1.835%
30 Year 1.736% 30 Year 2.315%

US Economic Data

07:00 AM MBA Mortgage Applications, Nov 1  Survey: —  Actual: -0.10% Prior: 0.60%
08:30 AM Nonfarm Productivity, 3Q P  Survey: 0.90%  Prior: 2.30%
     Unit Labor Costs, 3Q P  Survey: 2.20%  Prior: 2.60%

Canadian Economic Data

10:00 AM Ivey Purchasing Managers Index SA, Oct  Survey: —  Prior: 48.7

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