Market Update
US tsys slightly higher, yields 0.5bps lower, S&P futures -3.5., crude 64.44 unch after yest 2.0% gain. Muted volume in TY futures (285k) with little in the way of macro drivers. Bunds/gilts recovering form early plunge after news that Merkel had softened her stance on the Irish backstop limit, later denied by Germany. GOCs little changed, 10Y 1.73% , 10Y continues to cheapen on the curve, 10s30s snapped in 1.5bps yest following long TRP deal. TRP priced $1bln 2049s @ 234 which looked to be an 8-10bp concession.
News headlines
U.S. Futures Drift With Bonds; Europe Stocks Rise: Markets Wrap (Bloomberg) U.S. equity futures were steady and European shares climbed as investors appeared to shrug off threats from President Donald Trump for new tariffs on goods produced in the EU. Treasuries steadied alongside the dollar.
TSX futures point to lower opening after six-day rally (Reuters) Stock futures pointed to a lower opening for Canada’s main stock index on Tuesday after a six-day run of gains.
Potential U.S. auto tariffs would hurt Germany, Japan, Korea: Moody’s (Reuters) Ratings firm Moody’s said on Tuesday that potential auto tariffs by the United States would be a risk to global growth, hindering economic momentum in Germany, Japan and Korea.
Oil Holds Near Five-Month High Amid Libya, Iran Political Risks (Bloomberg) Oil in New York held near the highest level since late October as an escalation of geopolitical tensions in Libya and Iran fanned concerns over supplies.
Canadian dollar is ‘world’s most frustrating currency’: Strategist (BNN) The loonie’s failure to keep pace with the surge in crude oil prices this year was thrust into the spotlight Tuesday morning by a prominent strategist.
EU plans for own retaliation in aircraft dispute with U.S. (Reuters) The U.S. Trade Representative here on Monday proposed a range of EU products ranging from large commercial aircraft and parts to dairy products and wine to target as retaliation for subsidies given to Airbus.
China to review anti-dumping tariffs on U.S. distillers grains: document (Reuters) China’s Ministry of Commerce is set to review its anti-dumping tariffs on imports from the United States of distillers grains (DDGS), an animal feed ingredient, according to a document issued by the China Alcoholic Drinks Association.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.621% | 2 Year | 2.358% |
| 5 Year | 1.605% | 5 Year | 2.326% |
| 10 Year | 1.737% | 10 Year | 2.52% |
| 30 Year | 2.006% | 30 Year | 2.93% |
US Economic Data
| 6:00 AM | NFIB Small Business Optimism, Mar Surv 102.0 Actual 101.8 Prior 101.7 |
| 10:00 AM | JOLTS Job Openings, Feb Surv 7550 Prior 7581 |
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, 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