Canadian bond yields rose dramatically today with the five-year Canada bond yield up 8bp to 1.65%. This may be related to a decrease in trade tensions:
The Canadian dollar strengthened to an 11-day high against the greenback on Tuesday as investors calculated that the threat of trade uncertainty would ease for Canada even as they ramped up on countries with close economic links to China.
Signs that Asia is already feeling the pinch from a trade conflict between the United States and China pushed the U.S. dollar to a four-week high against a basket of major currencies.
Investors have worried that U.S. restrictions on Chinese telecoms equipment maker Huawei Technologies Co Ltd could lead to an escalation in the trade tensions between Washington and Beijing.
Meanwhile, the United States has agreed to lift tariffs on steel and aluminum from Canada and Mexico. Canadian Foreign Minister Chrystia Freeland has since said that Canada will move quickly to ratify the new North American trade pact, called the United States-Mexico-Canada Agreement, or USMCA.
Or maybe not. Who knows?
| 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 | 0.1920 % | 2,069.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1920 % | 3,796.5 |
| Floater | 5.68 % | 6.02 % | 49,293 | 13.80 | 3 | 0.1920 % | 2,187.9 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4435 % | 3,297.8 |
| SplitShare | 4.70 % | 4.85 % | 82,009 | 4.24 | 7 | 0.4435 % | 3,938.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4435 % | 3,072.8 |
| Perpetual-Premium | 5.53 % | 2.96 % | 85,816 | 0.09 | 12 | -0.0362 % | 2,952.9 |
| Perpetual-Discount | 5.43 % | 5.45 % | 71,934 | 14.75 | 20 | -0.1232 % | 3,108.6 |
| FixedReset Disc | 5.28 % | 5.44 % | 151,288 | 14.86 | 63 | 0.2205 % | 2,176.2 |
| Deemed-Retractible | 5.22 % | 5.81 % | 95,400 | 8.04 | 27 | 0.1769 % | 3,084.2 |
| FloatingReset | 3.96 % | 4.30 % | 44,569 | 2.58 | 4 | 0.0895 % | 2,412.3 |
| FixedReset Prem | 5.11 % | 3.84 % | 242,759 | 2.10 | 21 | 0.0464 % | 2,589.3 |
| FixedReset Bank Non | 1.98 % | 4.01 % | 153,976 | 2.60 | 3 | 0.0973 % | 2,649.4 |
| FixedReset Ins Non | 5.08 % | 6.75 % | 93,907 | 8.23 | 22 | 0.4653 % | 2,237.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRP.PR.A | FixedReset Disc | -1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-21 Maturity Price : 14.70 Evaluated at bid price : 14.70 Bid-YTW : 6.12 % |
| CU.PR.D | Perpetual-Discount | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-21 Maturity Price : 22.21 Evaluated at bid price : 22.53 Bid-YTW : 5.44 % |
| GWO.PR.N | FixedReset Ins Non | 1.02 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.82 Bid-YTW : 8.82 % |
| GWO.PR.Q | Deemed-Retractible | 1.06 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.90 Bid-YTW : 5.83 % |
| NA.PR.C | FixedReset Disc | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-21 Maturity Price : 22.23 Evaluated at bid price : 22.74 Bid-YTW : 5.44 % |
| MFC.PR.N | FixedReset Ins Non | 1.07 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.91 Bid-YTW : 7.89 % |
| BAM.PR.X | FixedReset Disc | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-21 Maturity Price : 13.85 Evaluated at bid price : 13.85 Bid-YTW : 6.04 % |
| PVS.PR.E | SplitShare | 1.10 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.75 Bid-YTW : 4.50 % |
| TRP.PR.C | FixedReset Disc | 1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-21 Maturity Price : 13.01 Evaluated at bid price : 13.01 Bid-YTW : 5.98 % |
| SLF.PR.I | FixedReset Ins Non | 1.47 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.75 Bid-YTW : 6.53 % |
| MFC.PR.G | FixedReset Ins Non | 1.60 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.35 Bid-YTW : 6.82 % |
| MFC.PR.M | FixedReset Ins Non | 1.65 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.50 Bid-YTW : 7.57 % |
| MFC.PR.L | FixedReset Ins Non | 1.99 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.45 Bid-YTW : 8.05 % |
| CU.PR.C | FixedReset Disc | 2.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-21 Maturity Price : 17.86 Evaluated at bid price : 17.86 Bid-YTW : 5.51 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.B | FixedReset Prem | 121,215 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-02-25 Maturity Price : 25.00 Evaluated at bid price : 25.80 Bid-YTW : 3.62 % |
| CM.PR.O | FixedReset Disc | 54,023 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-21 Maturity Price : 18.14 Evaluated at bid price : 18.14 Bid-YTW : 5.50 % |
| IAF.PR.I | FixedReset Ins Non | 29,600 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.30 Bid-YTW : 6.06 % |
| RY.PR.J | FixedReset Disc | 26,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-21 Maturity Price : 20.70 Evaluated at bid price : 20.70 Bid-YTW : 5.26 % |
| BMO.PR.D | FixedReset Disc | 25,670 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-21 Maturity Price : 22.12 Evaluated at bid price : 22.54 Bid-YTW : 5.24 % |
| CM.PR.R | FixedReset Disc | 24,516 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-21 Maturity Price : 22.35 Evaluated at bid price : 22.89 Bid-YTW : 5.36 % |
| There were 21 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| CCS.PR.C | Deemed-Retractible | Quote: 23.07 – 23.79 Spot Rate : 0.7200 Average : 0.5114 YTW SCENARIO |
| BAM.PF.B | FixedReset Disc | Quote: 18.01 – 18.46 Spot Rate : 0.4500 Average : 0.2778 YTW SCENARIO |
| CU.PR.E | Perpetual-Discount | Quote: 22.70 – 23.19 Spot Rate : 0.4900 Average : 0.3405 YTW SCENARIO |
| IFC.PR.C | FixedReset Ins Non | Quote: 18.05 – 18.55 Spot Rate : 0.5000 Average : 0.3611 YTW SCENARIO |
| IAF.PR.G | FixedReset Ins Non | Quote: 21.34 – 21.90 Spot Rate : 0.5600 Average : 0.4282 YTW SCENARIO |
| IFC.PR.A | FixedReset Ins Non | Quote: 14.88 – 15.30 Spot Rate : 0.4200 Average : 0.3292 YTW SCENARIO |