Market Update
US tsys trading higher, curve flatter, 10Y 2.62% (-1bp), low volume in TY futures (230k). Eco data includes Empire Man, Feb Ind Prod/Cap Util & March U. of Mich sentiment. Industrial production expected to rebound after Jan plunge – mostly related to weakness in autos, mining and defense (govt shutdown). GOCs slightly higher ahead of Jan Man Sales, Feb Existing Home Sales. Both CMB 5Y deal (36.5) and Ontario long reopening (85) went well, CMB 5Y still looks attractive vs CMB 28s and Ontarios.
News headlines
Stocks Ending Week on Solid Footing; Dollar Steady: Markets Wrap (Bloomberg) U.S. equity-index futures rose alongside European stocks as concerns appeared to ebb about the slowdown in global growth. Emerging-market shares advanced, while the dollar and Treasuries held steady.
Stock futures rise on renewed U.S.-China trade hopes (Reuters) U.S. stock index futures rose on Friday as investors welcomed positive signs regarding trade talks between the United States and China and after UK lawmakers voted to delay a potentially chaotic exit from the European Union.
China Vows to Stick to Targeted Stimulus Amid Jobless Pressure (Bloomberg) China will stick to its current targeted economic support strategy and resist the temptation to engage in large-scale stimulus like quantitative easing or a massive expansion in public spending, Premier Li Keqiang said.
For Poloz, Trump is delivering plenty of uncertainty to process (BNN) Unlike his Federal Reserve counterpart, Stephen Poloz doesn’t have Donald Trump breathing down his neck. But there’s still no getting away from the U.S. president.
TSX futures rise on renewed U.S.-China trade talk hopes (Reuters) Futures for Canada’s main stock index edged higher on Friday on fresh hopes of a resolution to the trade dispute between the United States and China.
Nine banks win dismissal of Canadian rate-rigging lawsuit in U.S. (Reuters) A federal judge in Manhattan on Thursday dismissed a lawsuit by investors that accused nine large banks, including six from Canada, of conspiring to manipulate a Canadian rate benchmark to improve profits from derivatives trading.
Oil Set for Weekly Gain as OPEC+ Meets to Discuss Extending Cuts (Bloomberg) Oil headed for a second weekly gain as the world’s top crude producers are scheduled to discuss extending their pledged output curbs to avert a global glut.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.642% | 2 Year | 2.456% |
| 5 Year | 1.628% | 5 Year | 2.422% |
| 10 Year | 1.742% | 10 Year | 2.618% |
| 30 Year | 2.041% | 30 Year | 3.031% |
US Economic Data
| 8:30 AM | Empire Manufacturing, Mar Surv 10.0 Prior 8.8 |
| 9:15 AM | Industrial Production MoM, Feb Surv 0.4% Prior -0.6% |
| Capacity Utilization, Feb Surv 78.5% Prior 78.2% | |
| 10:00 AM | JOLTS Job Openings, Jan Surv 7225 Prior 7335 |
| U. of Mich. Sentiment, Mar P Surv 95.6 Prior 93.8 | |
| 4:00 PM | Net Long-term TIC Flows, Jan Prior -$48.3b |
| Total Net TIC Flows, Jan -$33.1b |
Canadian Economic Data
| 8:30 AM | Manufacturing Sales MoM, Jan Surv 0.4% Prior -1.3% |
| 9:00 AM | Existing Home Sales MoM, Feb Surv -4.0% Prior 3.6% |
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