Market update

US tsys lower & curve steeper on risk on rally as Nikkei surged 7.7% o/n (see above), US 10Y 2.22 (+4bps). Core EU bonds outperforming led by 10Y bunds- bund/tsy spd at three week wides. US auctions $21bln in new 10Y notes at 1:00EST with yields ~5bps higher since the 3Y yest. Also pressuring tsys is a building corp calendar after yest saw $14bln in issuance(JDC, CP…). Today Amex, Marsh & Mclennan and Gilead with the latter looking to sell bonds across the curve. GOCs are lower before BOC decision, CAD steady after housing starts/permits came in stronger than exp. provis opening 0.5 – 1bp tighter, Ont 46s traded at 99 (from 100 yest cls), Ont 45/25 bx unch 11.5/11.2.QC/Ont 45 5.9/5.6 unch.

News headlines

Overnight markets

  • Overview: IG24 5Y 77.8/78.3 (-1.2), US 10yr note futures are down -0.23% at 126-31+, S&P 500 futures are up +0.97% at 1984.50, Crude oil futures are down -0.94% at 45.51, Gold futures are down -0.22% at $1118.5, DXY is up +0.38% at 96.349.
  • US BANK CDS (5yr): BAC 72/76 (-1), GS 92/96 (-1), MS 81/85 (-1), C 81/85 (-1), JPM 73/77 (-1), WFC 54/58 (-1)

US Economic Data

  • MBA mortgage applications came in this morning at -6.2% for the week ending September 4th, versus prior week 11.3% increase.
  • JOLTs job openings are forecast at 5300 in July compared to June 5249.

Canadian Economic Data

  • Housing starts came in at 216.9K in August versus July revised 193.3K.
  • Building permits came in at -0.6% MoM in July versus 15.5% in June.
  • Bank of Canada overnight lending rate decision will be release at 10:00 and is expected to remain at 0.50%.


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, Pierre-Olivier Boulanger
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

Tel : (514)-861-0240
Fax: (514)-861-3230