cti2015header-morning comments web

Market update

US tsys lower after stronger CPI (core highest since Aug 2011), 10Y futures higher on above avg. volume, US 10Y 1.78% (+2.5bps). European stocks lower led by banks despite ECB capital buffer news (see above). GOCs lower & steeper, spds ~3bps tighter vs tsys in the short end. Cda retail sales fell 2.2% m/m in Dec after rising 1.7% in Nov, missing consensus est by wide margin (-1.6% ex-autos vs -0.7%). Provis starting 0.5bps weaker after profit taking yesterday took spds 2bps wider. BC continues to outperform post budget – BC48/Ont46 traded up at -11.5 yest aft, now -11.8/-12.5. Another active day in corps yest with Ford long 3Y (June 19) @ 265OTC which we saw as a ~20bp concession and bonds broke tighter 259/256. Toyota priced a dual 5Y fixed & 3Y FRN, the 5Y @ 164 which broke 3bps tighter.


News headlines


Overnight markets 

  • Overview: US 10yr note futures are down -0.1432% at 130-24, S&P 500 futures are down -0.68% at 1903.5, Crude oil futures are down -3.54% at $29.68, Gold futures are up 0.12% at $1227.8, DXY is up 0.03% at 96.978.


 US Economic Data 

  • CPI MoM was released at a level of 0%, better than expected and up from prior month
  • CPI Ex Food and Energy MoM, was 0.3%, beating the estimate by 0.1% and up from prior month
  • CPI YoY growth was 1.4%, better than expected and up 0.7% from prior month


Canadian Economic Data 

  • Retail Sales MoM growth was -2.2%, worse than expected and down 3.9% from prior month
  • Retail Sales Ex Auto MoM growth was -1.6%, missing the estimate by 0.9% and down from the previous period.
  • CPI NSA MoM growth was released at 0.2%, better than expected and up 0.7% from prior month
  • CPI YoY growth was 2%, beating the estimate by 0.2% and up 0.4% from the previous period


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, David Leclair-Legault

Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

Tel : (514)-861-0240
Fax: (514)-861-3230