Market Update
After an inside session Monday, 30-yr futures look slightly more lively Tuesday, with bulls keeping an eye on the Friday high at 146-17 for direction. Tsys trading mixed, mildly steeper curves rotating around steady 10s at the moment. Long end reversed course, extended low end of range just as US$ index bounced recently. Rebound amid very light volume w/accts close to sidelines ahead Wed’s FOMC and ongoing Brexit headlines. Yld curves inch steeper; US$ index off recent lows (DXY -.158, 96.367 vs. 96.291L); equities firmer/near highs (SPX +9.75, 2850.25).
News headlines
Stocks Gain as Traders Await Fed; Dollar Steadies: Markets Wrap (Bloomberg) U.S. equity futures climbed alongside European stocks on Tuesday, while Asian shares drifted as investors marked time ahead of this week’s slew of central bank decisions. The dollar steadied and Treasuries edged higher.
Oil Rises After OPEC+ Reaffirms Commitment to Production Cuts (Bloomberg) Oil in New York rose to the highest level this year after OPEC and its partners agreed to go beyond their pledged supply curbs in the coming months.
Budget to tout the economy, help distract from SNC ahead of election (BNN) The Trudeau government will attempt to set the stage for this fall’s election — and provide some distraction from the SNC-Lavalin affair — with today’s end-of-mandate budget touting the Liberals’ economic record.
Stock futures higher as Fed kicks off policy meeting (Reuters) U.S. stock futures rose slightly on Tuesday as investors anticipated a more accommodative policy stance from the U.S. Federal Reserve in a two-day policy meeting this week.
May prepares to seek long Brexit delay as speaker scuppers plans (BNN) Theresa May looked set to seek a long extension to the U.K.’s European Union membership after the House of Commons speaker torpedoed her plan to win Parliamentary approval for her deal to leave the bloc.
German economic advisors slash 2019 growth forecast to 0.8 percent (Reuters) A panel of advisers to the German government slashed its growth forecast for this year to 0.8 percent and warned risks related to Britain’s departure from the European Union, trade disputes and a sharper than expected slowdown in China remained high.
TSX set to climb on rising crude; budget, Fed meet in focus (Reuters) Futures pointed to a higher opening for Canada’s main stock index on Tuesday as crude prices rose, supported by OPEC supply cuts.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.632% | 2 Year | 2.45% |
| 5 Year | 1.607% | 5 Year | 2.412% |
| 10 Year | 1.724% | 10 Year | 2.605% |
| 30 Year | 2.021% | 30 Year | 3.022% |
US Economic Data
| 10:00 AM | Factory Orders, Jan Surv 0.3% Prior 0.1% |
| Durable Goods Orders, Jan F Surv 0.4% Prior 0.4% | |
| Durables Ex Transportation, Jan F Surv -0.1% Prior -0.1% | |
| Cap Goods Orders Nondef Ex Air, Jan F Surv 0.8% Prior 0.8% | |
| Cap Goods Ship Nondef Ex Air, Jan F Prior 0.8% |
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