Canadian inflation was tamer than expected in July for both the headline and core rates, bolstering expectations the Bank of Canada will leave interest rates at near-record lows well into 2013.
Consumers paid less for clothing and fuels such as gasoline and natural gas in July compared with a year earlier, easing the annual inflation rate to 1.3 per cent from 1.5 per cent in June, Statistics Canada reported on Friday.
The consumer price index fell 0.1 per cent in the month versus a 0.4-per-cent decline in June.
The underlying core inflation rate, which excludes gasoline and seven other volatile items, softened to 1.7 per cent from 2 per cent. These items were also 0.1 per cent cheaper on a monthly basis.
It was a mixed day for the Canadian preferred share market, with PerpetualPremiums down 3bp, FixedResets gaining 10bp and DeemedRetractibles up 12bp. Volatility was minimal. Volume continued its recent pattern of rather high volume in a handful of issues, but overall well below average.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2387 % | 2,328.5 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2387 % | 3,483.2 |
| Floater | 3.13 % | 3.17 % | 61,668 | 19.26 | 3 | 0.2387 % | 2,514.2 |
| OpRet | 4.78 % | 2.47 % | 33,840 | 0.84 | 5 | 0.0125 % | 2,541.8 |
| SplitShare | 5.44 % | 5.07 % | 71,470 | 4.61 | 3 | 0.0928 % | 2,780.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0125 % | 2,324.2 |
| Perpetual-Premium | 5.29 % | 3.01 % | 99,323 | 0.41 | 28 | -0.0326 % | 2,277.2 |
| Perpetual-Discount | 4.93 % | 4.94 % | 96,851 | 15.52 | 3 | 0.6127 % | 2,536.3 |
| FixedReset | 4.99 % | 3.02 % | 174,504 | 3.96 | 71 | 0.1021 % | 2,427.6 |
| Deemed-Retractible | 4.94 % | 2.17 % | 131,758 | 1.16 | 46 | 0.1234 % | 2,359.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| POW.PR.D | Perpetual-Premium | -1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-08-17 Maturity Price : 24.68 Evaluated at bid price : 25.02 Bid-YTW : 5.04 % |
| ELF.PR.G | Perpetual-Discount | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-08-17 Maturity Price : 23.38 Evaluated at bid price : 23.65 Bid-YTW : 5.06 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.L | Deemed-Retractible | 663,539 | Desjardins crossed four blocks: 62,000 shares, 155,000 shares, 175,000 and 25,000, all at 25.95. National crossed 124,500, Nesbitt crossed 100,000 and TD crossed 10,000, all at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2016-04-27 Maturity Price : 25.00 Evaluated at bid price : 25.92 Bid-YTW : 3.50 % |
| BMO.PR.P | FixedReset | 181,644 | RBC crossed 150,000 at 26.40; Nesbitt crossed 18,200 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2015-02-25 Maturity Price : 25.00 Evaluated at bid price : 26.47 Bid-YTW : 2.94 % |
| CM.PR.K | FixedReset | 102,277 | Scotia crossed 100,000 at 26.35. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-31 Maturity Price : 25.00 Evaluated at bid price : 26.31 Bid-YTW : 2.74 % |
| RY.PR.P | FixedReset | 101,848 | Scotia crossed 35,000 at 26.35; RBC crossed 50,000 and Desjardins crossed 15,000 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-02-24 Maturity Price : 25.00 Evaluated at bid price : 26.31 Bid-YTW : 2.65 % |
| BNS.PR.T | FixedReset | 100,700 | TD crossed 100,000 at 26.63. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-04-25 Maturity Price : 25.00 Evaluated at bid price : 26.63 Bid-YTW : 2.45 % |
| PWF.PR.L | Perpetual-Premium | 97,613 | Nesbitt crossed 64,500 at 25.65; National crossed 12,200 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-10-31 Maturity Price : 25.25 Evaluated at bid price : 25.62 Bid-YTW : 4.48 % |
| There were 18 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| HSB.PR.C | Deemed-Retractible | Quote: 25.84 – 26.49 Spot Rate : 0.6500 Average : 0.4740 YTW SCENARIO |
| POW.PR.D | Perpetual-Premium | Quote: 25.02 – 25.47 Spot Rate : 0.4500 Average : 0.2785 YTW SCENARIO |
| MFC.PR.A | OpRet | Quote: 25.25 – 25.48 Spot Rate : 0.2300 Average : 0.1497 YTW SCENARIO |
| TD.PR.G | FixedReset | Quote: 26.64 – 26.88 Spot Rate : 0.2400 Average : 0.1615 YTW SCENARIO |
| BAM.PR.K | Floater | Quote: 16.70 – 16.97 Spot Rate : 0.2700 Average : 0.2037 YTW SCENARIO |
| HSE.PR.A | FixedReset | Quote: 25.79 – 25.97 Spot Rate : 0.1800 Average : 0.1151 YTW SCENARIO |