Market Update
US tsys trading slightly higher on low volume in TY futures (275k), 10Y 2.50%. March CPI and FOMC minutes this afternoon. Equities rebounding from Tuesday’s losses, S&P futures +7. Crude higher, 64.35 (+0.38) before DOE crude inventory data. OPEC’s latest monthly report points to tighter oil market due to supply cuts and Venezuela situation. ECB left rates unch as expected, no further details on planned TLTROs announced five weeks ago. Fed nominee Stephen Moore speaking on FOX business said the Dec rate increase was unwise, should be reversed. GOCs higher, 1bp tighter vs tsys in the 10Y, the 10Y Can/US the narrowest in five weeks on GOC underperformance. At noon the BOC auctions $3.0bln in 2Y bonds – reopened 1.75% May 21s with the 2Y (Feb 21) yield 1.60% -unch from the last auction on March 21st with the May/2Y roll slightly tighter -0.4/-0.5 vs -0.6 last auction.
News headlines
Stocks Rise as Treasury Yields Dip; Dollar Steady: Markets Wrap (Bloomberg) Stocks in Europe gained along with U.S. equity futures on what’s set to be a busy day, with a European Central Bank rates decision and American inflation data among events on investors’ radar. Treasuries rose and the dollar was steady.
ECB Keeps Policy Unchanged as Euro-Area Economy Faces New Risks (Bloomberg) European Central Bank officials reiterated their pledge to keep interest rates at record lows, giving themselves time to assess prospects for the euro area’s weakened economy as it confronts new risks.
Tech in driver’s seat as S&P 500 flirts with record (Reuters) Technology stocks are extending their leadership on Wall Street as the S&P 500 trades near its all-time high, with Advanced Micro Devices Inc , Xilinx Inc and Xerox Corp among the top performers since last December’s sell-off that stirred fear of an end to a decade-long bull market.
CANADA STOCKS-TSX futures gain on rising crude prices (Reuters) Stock futures pointed to a higher opening for Canada’s main stock index on Wednesday as tightening supply boosted oil prices.
Oil Near Five-Month High as U.S. Gasoline Stockpiles Decline (Bloomberg) Oil rose in New York, trading near a five-month high, after industry data indicated a sharp decline in American gasoline inventories last week.
PRECIOUS-Gold steadies near two-week peak on economic growth fears (Reuters) Gold held steady near a two-week high on Wednesday as world equities retreated after the International Monetary Fund (IMF) cut its global growth outlook ahead of the release of minutes from the U.S. Federal Reserve’s March meeting.
U.S. bank CEOs face off with Congress for the first time since financial crisis (Reuters) Chief executives of some of the largest U.S. banks will testify before Congress on Wednesday, giving lawmakers their first opportunity to grill the lenders since the 2007-2009 financial crisis.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.604% | 2 Year | 2.34% |
| 5 Year | 1.596% | 5 Year | 2.304% |
| 10 Year | 1.727% | 10 Year | 2.501% |
| 30 Year | 2.008% | 30 Year | 2.913% |
US Economic Data
| 7:00 AM | MBA Mortgage Applications, Apr 5 Actual -5.6% Prior 18.6% |
| 8:30 AM | CPI MoM, Mar Surv 0.4% Actual 0.4% Prior 0.2% |
| CPI Ex Food and Energy MoM, Mar Surv 0.2% Actual 0.1% Prior 0.1% | |
| CPI YoY, Mar Surv 1.8% Actual 1.9% Prior 1.5% | |
| CPI Ex Food and Energy YoY, Mar Surv 2.1% Actual 2.0% Prior 2.1% | |
| CPI Core Index SA, Mar Surv 261.465 Actual 261.374 Prior 260.989 | |
| CPI Index NSA, Mar Surv 254.167 Actual 254.202 Prior 252.776 | |
| 2:00 PM | Monthly Budget Statement, Mar Surv -$181.0b Prior -$208.7b |
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