Market Update
US tsys moving lower after March Durable Goods upside surprise (2.7% vs 0.8% exp), 10Y 2.54. Core Euro bonds mixed, bunds unch while UK gilt yields are ~2.5bps lower, 10Y gilt at two week low 1.15%. Another strong day for the USD index, DXY up for a third day at a two-year high, SEK touched multi decade lows on Swedish Riksbank plan to delay rate hikes. In Canada, GOCs lower, 1bp wider vs tsys in the pullback post data. At noon the BOC auctions $1.4bln 2% Dec 2051s with benchmark yields 2.0%, the last long auction being October 31st when yields were at a four-year high 2.50%. The long end has lagged in this latest rate rally, 10s30s reached 32bps yest the widest since Nov 2017, while the 51/48 roll has cheapened ~0.5bps both of which should support the auction.
News headlines
Bank of Canada abandons rate-hike bias amid economic slowdown (BNN) The Bank of Canada fully abandoned its bias toward raising interest rates as the economy grapples with a slowdown, bringing its policy in line with the Federal Reserve and other major industrial central banks.
TSX futures slip tracking global cues (Reuters) Futures for Canada’s main stock index edged lower on Thursday after world equity markets slipped amid global growth worries.
Stocks Mixed as Traders Digest Flood of Earnings: Markets Wrap (Bloomberg) U.S. equity-index futures were mixed on Thursday and European shares edged lower as investors parsed a slew of earnings against a backdrop of global growth concerns. The dollar hit a four-month high.
Brent oil hits $75 for first time in 2019 as Russian exports cut (Reuters) Brent oil rose above $75 per barrel on Thursday for the first time this year as quality concerns forced the suspension of some Russian crude exports to Europe while the United States prepared to tighten sanctions on Iran.
U.S. officials say global oil market ready for end to Iran crude exports (Reuters) U.S. attempts to drive Iranian oil exports down to zero come against the backdrop of a global market that is sufficiently well supplied to avoid price disruptions, senior U.S. officials said on Thursday.
Dow futures hit by 3M results; upbeat tech results support Nasdaq (Reuters) Dow and S&P futures were pressured by a steep fall in industrial company 3M’s shares on Thursday, while upbeat results from high-flying companies Facebook and Microsoft supported Nasdaq futures.
China seeks to allay fears over Belt and Road debt risks (Reuters) China aims to make the Belt and Road initiative sustainable and prevent debt risks, its finance minister said on Thursday, seeking to allay criticism that the infrastructure plan to boost trade and investment creates a heavy burden for some nations.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.533% | 2 Year | 2.318% |
| 5 Year | 1.517% | 5 Year | 2.317% |
| 10 Year | 1.689% | 10 Year | 2.527% |
| 30 Year | 2.006% | 30 Year | 2.948% |
US Economic Data
| 08:30 AM | Initial Jobless Claims, Apr 20 Survey 200k Actual 230k Prior 192k Revised 193k |
| Continuing Claims, Apr 13 Survey 1682k Actual 1655k Prior 1653k Revised 1654k | |
| Durable Goods Orders, Mar P Survey 0.8% Actual 2.7% Prior -1.6% Revised -1.1% | |
| Durables Ex Transportation, Mar P Survey 0.2% Actual 0.4% Prior -0.1% Revised -0.2% | |
| 09:45 AM | Bloomberg Consumer Comfort, Apr 21 Survey — Prior 60.3 |
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