Market Update
US tsys slightly weaker, 10Y yield 2.325% (+1bp), curve flatter led by longs after block buy in ultra longs (ULZ) at 167-04. Equity futures steady (S&P -0.75), crude higher for a 4th day 57.40 amid widening of Saudi corruption crackdown. Core Euro bonds mixed – gilt yields 2bps lower, recovering earlier losses , led by the long end on solid demand for new 2048 gilt linker syndication amid upcoming m/e large index extension (1Y in linkers). GOCs trading higher, outperforming tsys by 0.5-1bps, 10Y approaching 1.90% (1.91 – 1.5bps). Provincials closing better bid again yest on no supply
News headlines
Why the Next Four Days Will Be Crucial for the GOP Tax Bill (Bloomberg) The House tax-writing committee begins debate Monday on the GOP’s proposed overhaul, kicking off four frantic days for lobbyists and lawmakers to revise a bill that represents President Donald Trump’s final hope for a signature legislative achievement this year.
Trump Softens Tone on North Korea, Urges Deal on Nuclear Weapons (Bloomberg) President Donald Trump toned down his harsh rhetoric toward North Korea during a visit to Seoul, telling reporters the Pyongyang regime should “come to the table” to make a deal and refusing to rule out direct talks.
Saudi Corruption Purge Snares $33 Billion of Net Worth (Bloomberg) Crown Prince Mohammed bin Salman’s crackdown on some of Saudi Arabia’s richest and most powerful men has put $33 billion of personal wealth at risk.
Nikkei 225 Stock Average Rises to Highest Close Since 1992 (Bloomberg) Japanese stocks rallied, with the Nikkei 225 Stock Average reaching its highest close since January 1992, bolstered by strong corporate earnings and the yen’s weakness against the dollar.
Stocks Rise as Trump Talks Asia Trade; Bonds Gain: Markets Wrap (Bloomberg) U.S. stocks climbed and bonds advanced, while the dollar slipped as President Donald Trump tried to tackle trade on his Asia tour. A crackdown on corruption in Saudi Arabia sent oil soaring to its highest price in more than two years.
With Two Months to Go, U.S. Faces ‘Mad Dash’ to Adjust to MiFID (Bloomberg) For thousands of brokers, traders and money managers based in the U.S., time is running out. A shock wave is about to emanate from Brussels, the capital of the 28-nation European Union. That may as well be the dark side of the moon for some toiling away at financial firms in the U.S. A sweeping set of financial regulations dubbed MiFID II will take hold on Jan. 3, affecting everything from investment research to the booking of transactions. Most have heard of it, but they haven’t all fully addressed what will likely become a seismic industry shift.
Valeant beats profit estimate on Bausch and Lomb strength (Reuters) Canada’s Valeant Pharmaceuticals International Inc (VRX.N) (VRX.TO) reported a better-than-expected quarterly profit due to strength in its Bausch and Lomb eye-care business, sending its shares up 11.7 percent in premarket trading.
Stephen Bronfman denies link to offshore trust, but documents show it helped expand family business (CBC) Liberal fundraiser Stephen Bronfman, under fire for his ties to an offshore trust in the Cayman Islands exposed in the Paradise Papers, insisted Monday that he « has never funded nor used offshore trusts. »
Overnight markets
Overview: US 10yr note futures are down -0.037% at 125-10, S&P 500 futures are down -0.02% at 2588.25, Crude oil futures are down -0.1% at $57.29, Gold futures are down -0.31% at $1277.6, DXY is up 0.34% at 95.08, CAD/USD is up 0.46% at 0.7835
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.418% | 2 Year | 1.621% |
| 5 Year | 1.634% | 5 Year | 1.988% |
| 10 Year | 1.924% | 10 Year | 2.325% |
| 30 Year | 2.25% | 30 Year | 2.8% |
US Economic Data
| 10:00 AM | JOLTS Job Opening, Sep est 6075 (6082 prior) |
| 15:00 PM | Consumer Credit, Sep est 17.500b (13.065b prior) |
Canadian Economic Data
There is no Canadian economic data for today
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