Market Update US tsys trading firmer, paring earlier gains which saw tsy futures rise above yest afternoon highs, heavy volume in TY futures (688k),10Y 3.10% (-2.5bps) low since Oct 29th. Tsys gained momentum with sharp rally in UK gilts where yields are 7-10bps lower on the back of resignations of several cabinet members including Brexit secretary Raab. In Canada, GOCs are higher – outperforming tsys by up to 1.5bps in 10s, the 10Y below 2.40% a two-week low, the collapse in crude seemingly driving yields lower and GOC curve flatter led by 10s. Provis moving wider , Ont 28s 67.5/67, towards 70bp resistance from late May.
News headlines
PM May battles to save Brexit deal as ministers quit (Reuters) Prime Minister Theresa May battled on Thursday to save a draft divorce deal with the European Union after her Brexit secretary and other ministers quit in protest at an agreement they say will trap Britain in the bloc’s orbit for years.
U.S. jobless claims unexpectedly rise; several states estimated (Reuters) The number of Americans filing applications for jobless aid unexpectedly rose last week, but claims for three big states were estimated because of Monday’s Veterans Day holiday, which could have influenced the data.
China sends written response to U.S. trade reform demands – U.S. government sources (Reuters) China has delivered a written response to U.S. demands for wide-ranging trade reforms, three U.S. government sources said on Wednesday, a move that could trigger more formal negotiations to resolve a withering trade war between the world’s top economies.
Prominent managers loaded up on Apple before recent tumble (Reuters) Several prominent investors put fresh money to work in Apple (AAPL.O) during the third quarter even as they sold out of other high-flying tech companies, betting the iPhone maker’s stock would keep rising as strong growth overshadowed rising trade tensions between the United States and China.
Sterling, euro stocks scuttled as Brexit deal slams the rocks (Reuters) Sterling tumbled and the rest of Europe’s share markets groaned on Thursday after a long-awaited Brexit agreement was thrown into chaos as Britain’s chief negotiator for the deal quit just hours after it had been unveiled.
Ontario sharpens axe as it readies plan to cut mounting deficit (Bloomberg) Investors will be watching for hints as how Ontario plans to start tackling the world’s largest largest pile of sub-sovereign debt when the Canadian province gives a snapshot of its finances on Thursday. Finance Minister Victor Fedeli will unveil the new government’s economic and fiscal outlook in the provincial legislature starting at about 1:15 p.m. While not an official budget, the document will outline the government’s initial assessment of a province that’s growing moderately while steadily racking up debt.
Warren Buffett’s Berkshire Hathaway takes new stake in JPMorgan (FinancialTimes) Warren Buffett’s Berkshire Hathaway has taken a nearly $4bn stake in JPMorgan Chase and pumped billions of dollars more into other US banks, as his sprawling investment group expanded its reach across American finance.
Uber posts $1 billion loss in quarter as growth in bookings slows (Reuters) Uber Technologies Inc said on Wednesday that growth in bookings for its ride-hailing and delivery services rose 6 percent in the latest quarter, the third quarter in a row that growth has remained in the single digits after double-digit growth for all of last year.
Levi Strauss Seeks to Raise Up to $800 Million in IPO (Bloobmerg) Levi Strauss & Co., the ubiquitous U.S. jeans maker, is looking to raise $600 million to $800 million in an initial public offering, CNBC reported, citing people with knowledge of the matter.
Overnight markets
Overview: US 10yr note futures are up 0.224% at 119-01, S&P 500 futures are down -0.47% at 2685.75, Crude oil futures are up 0.23% at $56.38, Gold futures are up 0.33% at $1214.1, DXY is up 0.43% at 97.219, CAD/USD is down -0.12% at 0.756.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 2.238% | 2 Year | 2.833% |
| 5 Year | 2.318% | 5 Year | 2.911% |
| 10 Year | 2.381% | 10 Year | 3.088% |
| 30 Year | 2.426% | 30 Year | 3.34% |
US Economic Data
| 8:30 AM | Empire Manufacturing, Oct 23.3 est 20.0 (21.1 prior) |
| Philadelphia Fed Business Outlook, Sep 12.9 est 20.0 (22.2 prior) | |
| Retail Sales Advance MoM, Oct 0.8% est 0.2% (0.1% prior Revised -0.1%) | |
| Retail Sales Ex Auto MoM, Oct 0.7 % est 0.5% (-0.1% prior) | |
| Retail Sales Ex Auto and Gas, Oct 0.3% est 0.4% (0.0% prior) | |
| Retail Sales Control Group, Oct 0.3% est 0.4% (0.5% prior) | |
| Import Price Index MoM, Oct 0.5% est 0.2% (0.0% prior) | |
| Import Price Index ex Petroleum MoM, Oct 0.2% est 0.0% (0.0% prior) | |
| Import Price Index YoY, Oct 3.5% est 3.3% (3.7% prior) | |
| Export Price Index MoM, Oct 0.4% est 0.1% (0.0% prior) | |
| Export Price Index YoY, Oct 3.1% (2.7% prior) | |
| Initial Jobless Claims, Nov 10th 216k est 213k (214k prior) | |
| Continuing Claims, Nov 3rd 1676k est 1625k (1623k prior revised: 1630k) | |
| 9:45 AM | Bloomberg Consumer Comfort, Nov 11th (61.3 prior) |
| 10:00 AM | Business Inventories, Sep est 0.3% (0.5% prior) |
Canadian Economic Data
| 8:30 AM | Teranet/National Bank HP Index, Oct 225 .38 (226.23 prior) |
| Teranet/National Bank HPI MoM, Oct 0.4-% (0.0 prior) | |
| Teranet/National Bank HPI YoY, Oct 2.8% (2.1% prior) |
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, Hugues Savard
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