Market Update
US tsys trading mixed, with the curve 1bp flatter and the 10Y 0.5bps lower @2.325% on above avg volume in TY futures (330k). Tsys lagging the rise in German bunds, gilts with yields 1-2.5bps lower even as Eurozone producer prices rose 2.9% in Sep vs 2.7% forecast and oil hit a two year high, rising for a third session on the latest arrests in Saudi Arabia. SF Fed pres Williams said the Fed hould raise rates in Dec and 3 more times next year in an interview with MNI. GOCs are trading higher in line with tsys with the 10Y at a two month low 1.94%, the short end bearing the brunt of last Friday’s stronger employment data. provis opening unch after closing Fri 0.5bps tighter.
News headlines
Texas church shooter kills at least 26 in state’s deadliest mass shooting (CBC) A man dressed in black tactical-style gear and armed with an assault rifle opened fire inside a church in a small South Texas community on Sunday, killing 26 people and wounding about 20 in what the governor called the deadliest mass shooting in the state’s history. The dead ranged in age from 5 to 72 years old.
Crackdown on Billionaires and Other Top Officials Shakes Up Saudi Arabia (Bloomberg) Even by the standards of Crown Prince Mohammed bin Salman, whose meteoric ascent has put him on the cusp of the Saudi throne at the age of 32, the Saturday night crackdown was stunning.
Oil Trades Near 2-Year High After Saudi Prince Purges Officials (Bloomberg) Oil traded near the highest level in two years after Saudi Arabia’s Crown Prince, Mohammed bin Salman, ousted officials during an anti-graft probe in the world’s biggest crude exporter.
Trump Warns Against Challenging U.S. During First Stop in Asia (Bloomberg) President Donald Trump warned nations against challenging the U.S. as he rallied American troops in Japan on the first stop of his 11-day tour of Asia. Speaking to U.S. and Japanese military personnel on Sunday at Yokota Air Base in western Tokyo, Trump said he’d push for freedom in the region and fair trade in meetings with other leaders. He also exuded confidence in the U.S. military as tensions rise with North Korea.
Weakened Trump Looks to the ‘King of China’ to Give Him a Boost (Bloomberg) Shortly after Donald Trump’s surprise election win, Barack Obama gave some advice to President Xi Jinping in the final minutes of their last meeting as leaders of the world’s biggest economies.
Broadcom Explores Deal to Buy Chipmaker Qualcomm (Bloomberg) Broadcom Ltd. is considering a bid of more than $100 billion for Qualcomm Inc., according to people familiar with the matter, in what would be the biggest-ever takeover of a chipmaker.
The Paradise Papers Data Dump: What’s Been Reported So Far (Bloomberg) A new set of data taken from an offshore law firm again threatens to expose the hidden wealth of individuals and show how corporations, hedge funds and others may have skirted taxes. A year after the Panama Papers, a massive leak of confidential information from the Bermuda law firm Appleby Group Services Ltd. has shone another light on the use of offshore accounts.
Greater Montreal homes sold quicker in Oct. as prices rose seven per cent (CTV) Greater Montreal homes sold more quickly in October as continued strong demand propelled average prices seven per cent higher, the area’s real estate board said Monday. « The single-family home and plex markets are becoming increasingly favourable to sellers, as selling times for these property categories are falling, » said Mathieu Cousineau, president of the Greater Montreal Real Estate Board.
Canada job market shows unexpected strength, wage growth firms (Reuters) he Canadian economy added more jobs than expected in October as wages posted their biggest gain in 18 months, a sign that labor market slack could be tightening despite strong employment growth over the last year.
Overnight markets
Overview: US 10yr note futures are up 0.15% at 125-11, S&P 500 futures are down -0.05% at 2581.5, Crude oil futures are up 0.74% at $56.05, Gold futures are up 0.23% at $1272.1, DXY is up 0.02% at 94.963, CAD/USD is down 0% at 0.7835.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.439% | 2 Year | 1.613% |
| 5 Year | 1.656% | 5 Year | 1.983% |
| 10 Year | 1.944% | 10 Year | 2.324% |
| 30 Year | 2.262% | 30 Year | 2.805% |
US Economic Data
There is no US economic Data for today.
Canadian Economic Data
| 10:00 AM | Bloomberg Nanos Confidence, Nov 3rd (57.6 prior) |
| Ivey Purchasing Managers Index SA, Oct (59.6 prior) |
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, Hugues Savard
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230