There was a little pop in bond yields today:
Treasury 10-year note yields (USGG10YR) rose to the highest levels in two weeks after a gauge of U.S. manufacturing expanded at a faster pace than forecast, weakening the case for the Federal Reserve to maintain stimulus.
The benchmark securities extended the first five-day drop in three weeks as Fed Bank of St. Louis President James Bullard said labor market gains in the past year could warrant a cut in the bond buying. Fed policy makers said Oct. 30 that the economy showed signs of “underlying strength” even as they maintained their $85 billion of monthly asset purchases.
Want a raise? Go west, young man!
Data released yesterday by Statistics Canada showed the difference in average hourly wages in Alberta and the rest of the country, but for Saskatchewan, widened again in August.
“Note that hourly wages are now nearly $6 less in Atlantic Canada than in Alberta, the widest gap on record, a factor that has contributed to pushing more than 11,000 migrants out of the region in the past year – a major headache for housing markets, government finances, etc.,” said senior economist Robert Kavcic of BMO Nesbitt Burns.
“Even B.C. is seeing the wage gap approach $4/hour versus Alberta, and not coincidentally is also seeing a decade-high net outflow of workers.”
The StatsCan report indicates that a decent economy is still comfortably far away:
Click for Big
… with an implication that those who decided to earn a living filing paperwork for construction companies are getting vindicated …
Click for Big
DBRS confirmed Enbridge at Pfd-2(low):
DBRS has today confirmed the Issuer Rating of Enbridge Inc. (ENB or the Company) at A (low) and ratings on ENB’s Medium-Term Notes & Unsecured Debentures, Commercial Paper and Cumulative Redeemable Preferred Shares ratings at A (low), R-1 (low) and Pfd-2 (low), respectively, all with Stable trends. The ratings reflect (1) a relatively strong business risk profile, (2) pressure on ENB’s near-to-medium-term credit metrics and (3) results under the ten-year Competitive Tolling Settlement (CTS), effective July 1, 2011.
Enbridge is the proud issuer of ENB.PR.A, ENB.PR.B, ENB.PR.D, ENB.PR.F, ENB.PR.H, ENB.PR.N, ENB.PR.P, ENB.PR.T and ENB.PR.Y, as well as some US-Pay stuff that I don’t track.
It was a negative day for the Canadian preferred share market, with PerpetualDiscounts down 11bp, FixedResets off 3bp and DeemedRetractibles losing 18bp. The Performance Highlights table is longer than one might expect given the modest overall moves, with a preponderance of Straight losers. Volume was on the low side of average.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| 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 | 0.2682 % | 2,465.9 |
| FixedFloater | 4.18 % | 3.46 % | 27,003 | 18.46 | 1 | 0.1323 % | 4,012.5 |
| Floater | 3.01 % | 3.03 % | 62,859 | 19.64 | 3 | 0.2682 % | 2,662.5 |
| OpRet | 4.63 % | 3.38 % | 67,802 | 0.57 | 3 | -0.1541 % | 2,636.1 |
| SplitShare | 4.74 % | 4.90 % | 63,167 | 3.68 | 6 | 0.0202 % | 2,957.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1541 % | 2,410.4 |
| Perpetual-Premium | 5.59 % | 3.68 % | 126,485 | 0.31 | 11 | -0.0613 % | 2,298.0 |
| Perpetual-Discount | 5.53 % | 5.52 % | 183,016 | 14.55 | 27 | -0.1093 % | 2,372.7 |
| FixedReset | 5.01 % | 3.59 % | 227,630 | 3.37 | 82 | -0.0277 % | 2,454.1 |
| Deemed-Retractible | 5.08 % | 4.20 % | 195,601 | 1.50 | 42 | -0.1802 % | 2,409.5 |
| FloatingReset | 2.62 % | 2.37 % | 310,113 | 4.53 | 5 | -0.0317 % | 2,454.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PF.B | FixedReset | -2.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-01 Maturity Price : 22.55 Evaluated at bid price : 23.55 Bid-YTW : 4.55 % |
| GWO.PR.N | FixedReset | -1.99 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.71 Bid-YTW : 4.75 % |
| MFC.PR.C | Deemed-Retractible | -1.66 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.30 Bid-YTW : 6.48 % |
| VNR.PR.A | FixedReset | -1.38 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-10-15 Maturity Price : 25.00 Evaluated at bid price : 25.05 Bid-YTW : 4.38 % |
| ELF.PR.F | Perpetual-Discount | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-01 Maturity Price : 23.22 Evaluated at bid price : 23.52 Bid-YTW : 5.67 % |
| BAM.PF.C | Perpetual-Discount | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-01 Maturity Price : 20.01 Evaluated at bid price : 20.01 Bid-YTW : 6.14 % |
| SLF.PR.C | Deemed-Retractible | -1.01 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.53 Bid-YTW : 6.27 % |
| BAM.PR.T | FixedReset | 1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-01 Maturity Price : 22.57 Evaluated at bid price : 23.31 Bid-YTW : 4.42 % |
| TRP.PR.C | FixedReset | 1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-01 Maturity Price : 22.28 Evaluated at bid price : 22.61 Bid-YTW : 3.73 % |
| PWF.PR.L | Perpetual-Discount | 1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-01 Maturity Price : 23.51 Evaluated at bid price : 23.81 Bid-YTW : 5.37 % |
| CIU.PR.C | FixedReset | 2.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-01 Maturity Price : 21.09 Evaluated at bid price : 21.09 Bid-YTW : 3.82 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| FTS.PR.J | Perpetual-Discount | 53,435 | RBC crossed two blocks of 25,000 each, both at 23.26. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-01 Maturity Price : 22.76 Evaluated at bid price : 23.16 Bid-YTW : 5.19 % |
| CM.PR.G | Perpetual-Premium | 32,900 | Desjardins crossed 21,000 at 25.03. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-01 Maturity Price : 25.00 Evaluated at bid price : 25.02 Bid-YTW : 5.35 % |
| CU.PR.C | FixedReset | 29,800 | Scotia crossed 24,700 at 25.25. YTW SCENARIO Maturity Type : Call Maturity Date : 2017-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.25 Bid-YTW : 3.92 % |
| MFC.PR.C | Deemed-Retractible | 21,353 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.30 Bid-YTW : 6.48 % |
| CM.PR.E | Perpetual-Premium | 18,616 | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-12-01 Maturity Price : 25.00 Evaluated at bid price : 25.13 Bid-YTW : -0.36 % |
| CM.PR.K | FixedReset | 18,360 | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-31 Maturity Price : 25.00 Evaluated at bid price : 25.50 Bid-YTW : 2.70 % |
| There were 28 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| CIU.PR.C | FixedReset | Quote: 21.09 – 21.75 Spot Rate : 0.6600 Average : 0.5245 YTW SCENARIO |
| BNS.PR.O | Deemed-Retractible | Quote: 26.24 – 26.61 Spot Rate : 0.3700 Average : 0.2458 YTW SCENARIO |
| IAG.PR.G | FixedReset | Quote: 25.56 – 25.83 Spot Rate : 0.2700 Average : 0.1857 YTW SCENARIO |
| PWF.PR.I | Perpetual-Premium | Quote: 25.20 – 25.50 Spot Rate : 0.3000 Average : 0.2286 YTW SCENARIO |
| SLF.PR.G | FixedReset | Quote: 22.48 – 22.67 Spot Rate : 0.1900 Average : 0.1225 YTW SCENARIO |
| GWO.PR.M | Deemed-Retractible | Quote: 25.41 – 25.58 Spot Rate : 0.1700 Average : 0.1047 YTW SCENARIO |