cti2015header-morning comments web

Market update

US tsys trading higher, yields ~2bps lower & curve unch, US 10Y 1.705. Ten yr futs higher since European trading as global equities weaker (Euro stocks -2.0%), USD higher and crude down $1.00 @ 0.75. Fed Fischer said March rate hike not off the table, lower gas prices supporting consumer spending, but admits ‘we simply don’t know what FOMC will do in March. Tsy auctions $34bln in 5Y notes this aft so a modest concession may be needed considering that barely 50% odds of a rate hike are priced in all year (jan 5Y auction cleared ~1.5bps cheap to the WI). In Canada GOCs are higher, lagging tsys ~1bp. Provis opening with risk off tone after supply yest (Alb longs, O led spds ~2bps wider at the close.

News headlines


Overnight markets 

  • Overview: US 10yr note futures are up 0.3222% at 131-12, S&P 500 futures are down -0.85% at 1899.75, Crude oil futures are down -3.14% at $30.87, Gold futures are up 1.84% at $1245.1, DXY is up 0.14% at 97.62.

 US Economic Data 

  • MBA Mortgage Applications growth was released at -0.043%, down from the prior month
  • Markit US Services PMI will be released at 9:45 AM
  • Markit US Composite PMI will be released at 9:45 AM
  • New Home Sales will be released at 10:00 AM
  • New Home Sales MoM growth will be released at 10:00 AM

Canadian Economic Data 

  • There is no major economic data 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, David Leclair-Legault

Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

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