Market Update
US tsys trading lower, 10Y 2.485% (+2bps), low volume in TY futures (228k). US equity futures slightly higher, crude lower 64.04 (-0.88). Core EGBs mixed, 10Y gilt yields at three-week high following Brexit extension until October 31st. US March PPI and claims on deck, and US $156bln 30Y T-bond auction at 1:00ET. GOCs lower, lagging the decline in tsys by 0.5bps, 10Y 1.69%. CAD 0.4% lower 1.3377 with lower crude. Ontario budget today, expected to address $14.5bln deficit as well as its ~$350bln debt burden
News headlines
U.S., China agree to establish trade deal enforcement offices: Mnuchin (Reuters) The United States and China have largely agreed on a mechanism to police any trade agreement they reach, including establishing new “enforcement offices,” U.S. Treasury Secretary Steven Mnuchin said on Wednesday.
U.S. Futures Edge Up With Europe Stocks; Oil Slips: Markets Wrap (Bloomberg) U.S. equity-index futures turned higher with European shares after a downbeat session in Asia. Treasuries edged down while the dollar was steady.
Oil Retreats as Swelling U.S. Stockpiles Undermine OPEC’s Cuts (Bloomberg) Oil retreated from a five-month high as an increase in U.S. crude inventories overshadowed OPEC’s efforts to reduce production.
Fed Signals a Year of Patience Is Ahead With a Grab Bag of Growth Risks (Bloomberg)
China producer inflation picks up for first time in nine months, eases deflation worries (Reuters) China’s factory-gate inflation picked up for the first time in nine months in March, lifted by price rises in global commodities as well as signs that government efforts to boost the economy may be putting a floor under domestic demand.
CANADA STOCKS-TSX futures point to a higher open (Reuters) Stock futures pointed to higher opening for Canada’s main index on Thursday, building on the previous day’s gains as investors look forward to earnings season.
Growth woes, trade tension douse rally in Asian shares (Reuters) Asian stocks stepped back from near eight-month highs on Thursday and the dollar eased as cautious European and U.S. central banks reinforced investors’ worries about the slowing global economy and trade protectionism.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.573% | 2 Year | 2.332% |
| 5 Year | 1.566% | 5 Year | 2.287% |
| 10 Year | 1.695% | 10 Year | 2.481% |
| 30 Year | 1.987% | 30 Year | 2.906% |
US Economic Data
| 8:30 AM | PPI Final Demand MoM, Mar Surv 0.3% Prior 0.1% |
| PPI Ex Food and Energy MoM, Mar Surv 0.2% Prior 0.1% | |
| PPI Final Demand YoY, Mar Surv 1.9% Prior 1.9% | |
| PPI Ex Food and Energy YoY, Mar Surv 2.4% Prior 2.5% | |
| Initial Jobless Claims, Apr 6 Surv 210k Prior 202k | |
| Continuing Claims, Mar 30 Surv 1735k Prior 1717k | |
| 9:45 AM | Bloomberg Consumer Comfort, Apr 7 Prior 58.9 |
Canadian Economic Data
| 8:30 AM | New Housing Price Index MoM, Feb Surv 0.0% Prior -0.1% |
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