Market Update
Tsys trading weaker across the curve, on low volume (230k), 10Y 2.65% (+1.6bps). ‘Risk on’ with equities higher -S&P futures reversing earlier decline now +9, USD index higher for eighth day, crude lower – expectations that trade talks with US & China will yield positive results ahead of March 1st deadline for higher tariffs. GOCs lower, 0.5-1bp wider vs tsys, 10y 1.90%, 10Y butterfly 2bps weaker on the curve. GOC yields barely 2-3bps higher since Friday’s blockbuster employment data after short covering led by CGBs. Provis opening unch , more supply expected (alberta, Sask)
News headlines
Stocks inch higher as investors look ahead to trade talks, Brexit (Reuters) World stock markets edged higher on Monday, as investors eyed the resumption of trade talks between the United States and China and watched for signs of progress on Brexit.
China upbeat on U.S. trade talks, but South China Sea tensions weigh (Reuters) China struck an upbeat note on Monday as trade talks resumed with the United States, but also expressed anger at a U.S. Navy mission through the disputed South China Sea, casting a shadow over the prospect for improved Beijing-Washington ties.
TSX futures up on U.S-China trade deal hopes (Reuters) Stock futures for Canada’s main index rose on Monday, lifted by fresh hopes that the United States and China will take necessary steps to resolve their trade dispute.
Oil Near $52 After Worst Week Since December on Growth Concerns (Bloomberg) Oil slipped again, trading near $52 a barrel in New York after mounting concerns about the health of the global economy triggered the sharpest weekly price drop since December.
Ottawa expects trade interest in China to slow amid tensions (BNN) Canada’s trade minister says the government expects Canadian business interest in China to slow given current tensions, but he is confident the two countries will work through their differences and allow economic ties to again flourish.
With Iran squeezed out, U.S. oil takes on new rivals in Europe (Reuters) When the global oil trading industry gathered for its biggest annual meeting in Asia in September last year, U.S. oil producing companies came well prepared.
Exclusive: German trade surplus with U.S. declined in 2018 but was still almost 49 billion euros (Reuters) Germany’s trade surplus with the United States, a frequent source of tension with U.S. President Donald Trump, declined last year but nonetheless remained at around 49 billion euros ($55.37 billion), data seen by Reuters showed on Monday.
Time Running Out to Avoid Government Shutdown as Talks Falter (Bloomberg) Time is running out to avoid a second partial government shutdown, as congressional talks about border-security funding broke down during the weekend in the latest dispute over detention beds for immigrants.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.788% | 2 Year | 2.471% |
| 5 Year | 1.813% | 5 Year | 2.455% |
| 10 Year | 1.904% | 10 Year | 2.647% |
| 30 Year | 2.153% | 30 Year | 2.988% |
US Economic Data
There is no US economic data for today.
Canadian Economic Data
| 10:00 AM | Bloomberg Nanos Confidence, Feb 8 Prior 54.2 |
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