Market Update

US tsys resume trading after holiday , 10Y  below 2.30% (2.295 -2.6bps), yields lower despite bounce back in equities, risk on tone thou China/US trade still on the front burner.  Core EGBS higher, UK gilts higher, 10Y 0.93% new low since Oct 2016. GOCs higher in line with tsys, no data today yet BOC and GDP coming up Wed and Friday

News headlines

Stocks Dip as Treasury Yields Drop to 19-Month Low: Markets Wrap (Bloomberg) U.S. equity futures edged lower with European stocks as traders returned from American and U.K. holidays with a cautious outlook. The dollar advanced with Treasuries.

Futures slip as U.S.-China trade worries persist (Reuters) U.S. stock index futures dipped on Tuesday following an extended weekend as investors took a cautious stance after President Donald Trump signaled that the United States and China are far from a trade agreement.

Brent Oil Steadies After Rally as Trump Not Ready for Trade Deal (Bloomberg) Brent crude traded around $70 a barrel as a two-day rebound eased on signs the U.S. and China are still far from reaching a trade deal, but prices remained supported by supply risks in the Middle East.

Canada takes a first step towards ratifying trade deal with U.S., Mexico (Reuters) Canada took a first step toward ratifying a new North American trade agreement on Monday just three days ahead of U.S. Vice President Mike Pence’s trip to Ottawa to discuss passage of the treaty.

Trump’s red carpet visit gives Japan brief reprieve on trade, pressure stays (Reuters) Japan rolled out the red carpet for U.S. President Donald Trump this week, winning Tokyo a brief respite in its trade battle with Washington, but Prime Minister Shinzo Abe faces pressure to deliver concessions after a summer election.

Stocks rally cut off by EU threats over Italy’s budget (Reuters) European stocks, bond yields and the euro fell on Tuesday as concern about Italy’s budget overshadowed talks of a Fiat-Chrysler and Renault merger and the muted showing of nationalists in European Union parliamentary elections.

Euro zone sentiment better than expected in May (Reuters) Euro zone economic sentiment was better than expected in May, rebounding after 10 consecutive monthly falls thanks to more optimism in the biggest sector, services, but also in industry and among consumers, European Commission data showed on Tuesday.

Overnight markets

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.532% 2 Year 2.143%
5 Year 1.466% 5 Year 2.092%
10 Year 1.579% 10 Year 2.289%
30 Year 1.836% 30 Year 2.723%

US Economic Data

09:00 AM House Price Purchase Index QoQ, 1Q Survey — Prior 1.10%
         FHFA House Price Index MoM, Mar Survey 0.20% Prior 0.30%
         S&P CoreLogic CS 20-City MoM SA, Mar Survey 0.50% Prior 0.20%
          S&P CoreLogic CS 20-City YoY NSA, Mar Survey 2.55% Prior 3.00%
           S&P CoreLogic CS 20-City NSA Index, Mar Survey 213.80 Prior 212.70
10:00 AM Conf. Board Consumer Confidence, May Survey 130.0 Prior 129.2
10:30 AM Dallas Fed Manf. Activity, May Survey 5.8 Prior 2.0

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