cti2015header-morning comments web

Market update

With the US closed, GOCs are higher & flatter, taking the lead from core Euro bonds which are seeing flatter curves for a fourth day led by 10Y gilts which are ~3bps lower @1.85% the lowest since Oct 28th. Bunds mixed with short end underperforming on surprising growth ion Eurozone M3 money supply & acceleration in lending to households according to ECB data for Oct.The Barclays Euro Agg index has a mild 0.04yr extension on Dc 1st, vs 0.13yr extension in the US tsy index. CBGs expected to take a breather after yesterday’s strong performance saw  10s at new narrows on the curve and the 10Y roll a full 1bp wider @11 even as the 5s/10s curve closed 2bps flatter. Provis flat for a third day, Ont 46s 105.5/104.5, Qc/Ont 25 roll 5.2/4.7 with economic updates from QC & Ont today.


News headlines

  • Saudi counters ‘lower for longer’ oil mantra. Saudi Arabia’s veteran oil minister made clear late last year that the kingdom would no longer prop up the oil market, saying it was tired of cutting output to guarantee $100 a barrel for high-cost rivals.
  • Why there’s calm at flattening yield curve The US yield curve is flattening. Should markets be worried?The difference in yield between US 10-year and two-year sovereign bonds this week contracted to less than 130 basis points, its narrowest since February and only a dozen basis points shy of the tightest spread since the height of the financial crisis in early 2008.


Overnight markets

  • Overview: US 10yr note futures are up +0.09% at 127-03, S&P 500 futures are up +0.36% at 2095.50, Crude oil futures are down -0.65% at 42.78$, Gold futures are up +0.07% at $107050, DXY is up +0.01 % at 99.801.


US Economic Data

  • There is no major economic data today.


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, Pierre-Olivier Boulanger
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

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