Market Update
US tsys higher, 10Y 2.68% (-2bps) prices at highs of overnite session after ECB decision, will leave rates on hold thru this year at least, announcement of new long-term lending operations. German bund yields 1-2bps lower, 10Y 0.10% closing in on Feb low (0.085%). GOCs higher, in line with tsys, Can/US reaching new narrows after BOC statement, short end of the GOC curve trading below o/n rate. Corp spreads under pressure as supply picks up – Northwestern Hydro (Al) priced $1.1bln in 2036 & 2038 bonds, Daimler issued $300mln 5Y @ 130.2, and Fortified Trust (BMO) issued 5Y ABS @89.
News headlines
ECB unleashes support package for economy threatened by slowdown (BNN) The European Central Bank said it will offer more cheap loans to banks and keep interest rates at record-lows for longer as a weakening economy derails its plan to withdraw stimulus.
Futures edge lower as investors await fresh triggers (Reuters) U.S. stock futures ticked lower on Thursday after three days of declines, as investors sought fresh reasons to buy following a strong run in stocks this year.
CANADA STOCKS-Futures edge higher on oil gains (Reuters) Futures pointed to a slightly higher opening for Canada’s main stock index on Thursday as ongoing OPEC-led supply cuts and U.S. sanctions against exporters Venezuela and Iran supported oil prices.
PM admits ‘erosion of trust’ between office, Wilson-Raybould over SNC (BNN) Prime Minister Justin Trudeau says there was an “erosion of trust” between his office and former justice minister Jody Wilson-Raybould over the SNC-Lavalin case.
U.S. Futures, Europe Stocks Edge Up on Dovish ECB: Markets Wrap (Bloomberg) U.S. futures and European stocks erased losses as the ECB took a dovish turn at its latest policy meeting, underscoring concerns over the global economy but raising hopes policy makers will move to support growth. The euro fell.
Loonie drops to two-month low after Bank of Canada changes tone (BNN) The Canadian dollar tumbled to the weakest level since the opening days of 2019, and the nation’s government-bond yields sank, after the Bank of Canada dropped its assertion that interest rates need to rise amid signs of slowing economic growth.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.665% | 2 Year | 2.508% |
| 5 Year | 1.684% | 5 Year | 2.486% |
| 10 Year | 1.814% | 10 Year | 2.681% |
| 30 Year | 2.107% | 30 Year | 3.062% |
US Economic Data
| 7:30 AM | Challenger Job Cuts YoY, Feb Actual 117.2% Prior 18.7% |
| 8:30 AM | Initial Jobless Claims, Mar 2 Surv 225k Actual 223k Prior 225k |
| 8:30 AM | Continuing Claims, Feb 23 Surv 1772k Actual 1755k Prior 1805k |
| Nonfarm Productivity, 4Q Surv 1.5% Actual 1.9% Prior 2.3% | |
| 9:45 AM | Bloomberg Consumer Comfort, Mar 3 Prior 61.0 |
| 3:00 PM | Consumer Credit, Jan Surv $17.000b Prior $16.554b |
Canadian Economic Data
| 8:30 AM | Building Permits MoM, Jan Surv -5.0% Actual -5.5% Prior 6.0% |
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