Click for Big
TXPR closed at 536.59, down 0.62% on the day. Volume today was 2.36-million, well above the median of the past thirty days
CPD closed at 10.67, down 0.56% on the day. Volume was 223,221, fourth-highest of the past 30 trading days.
ZPR closed at 8.34, down 0.83% on the day. Volume of 559,175 was second-highest of the past 30 trading days, behind only June 5.
Five-year Canada yields were down 6bp at 0.39% today.
The Fed released its FOMC Statement:
The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.
The coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world. The virus and the measures taken to protect public health have induced sharp declines in economic activity and a surge in job losses. Weaker demand and significantly lower oil prices are holding down consumer price inflation. Financial conditions have improved, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.
The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term. In light of these developments, the Committee decided to maintain the target range for the federal funds rate at 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.
The Committee will continue to monitor the implications of incoming information for the economic outlook, including information related to public health, as well as global developments and muted inflation pressures, and will use its tools and act as appropriate to support the economy. In determining the timing and size of future adjustments to the stance of monetary policy, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.
To support the flow of credit to households and businesses, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions. In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations. The Committee will closely monitor developments and is prepared to adjust its plans as appropriate.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles.
Of interest is the dot plot of expectations:
Click for Big
… and the related projection of a slow recovery:
In their first economic projections this year, Fed officials indicated that they expected the unemployment rate to end 2020 at 9.3 percent and remain elevated for years, coming in at 5.5 percent in 2022, The New York Times’s Jeanna Smialek reports. Output is expected to be 6.5 percent lower at the end of this year than it was in the final quarter of 2019.
“Nearly 20 million jobs have been lost on net since February,” the Fed chair, Jerome H. Powell, said at a news conference following the release of the forecast, and noted that the figure probably understates the extent of unemployment. “The downturn has not fallen equally on all Americans.”
The new forecasts predict a much slower path back to economic strength than the Trump administration — and perhaps the stock market — seems to expect as the economy climbs out of a virus-spurred downturn. The Fed skipped its quarterly economic summary in March as the pandemic gripped the United States, sowing uncertainty as business activity came to a near standstill.
PerpetualDiscounts now yield 5.25% 5.72%, equivalent to 6.82% 7.44% interest at the standard equivalency factor of 1.3x. Long corporates now yield 3.28%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has narrowed dramatically significantly to 355bp 415bp from the 430bp reported June 3.
| 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 | -1.1456 % | 1,476.3 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.1456 % | 2,708.9 |
| Floater | 5.23 % | 5.49 % | 40,576 | 14.56 | 4 | -1.1456 % | 1,561.2 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2785 % | 3,468.2 |
| SplitShare | 4.84 % | 4.62 % | 64,740 | 3.87 | 7 | -0.2785 % | 4,141.7 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2785 % | 3,231.5 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0505 % | 3,027.8 |
| Perpetual-Discount | 5.56 % | 5.72 % | 76,882 | 14.23 | 35 | 0.0505 % | 3,247.6 |
| FixedReset Disc | 6.20 % | 5.25 % | 171,849 | 14.72 | 83 | -0.8973 % | 1,838.9 |
| Deemed-Retractible | 5.34 % | 5.40 % | 86,745 | 14.41 | 27 | -0.2671 % | 3,204.5 |
| FloatingReset | 4.87 % | 4.93 % | 50,265 | 15.66 | 3 | -1.7453 % | 1,789.4 |
| FixedReset Prem | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.8973 % | 2,543.2 |
| FixedReset Bank Non | 1.99 % | 3.66 % | 141,434 | 1.60 | 2 | 0.0205 % | 2,774.8 |
| FixedReset Ins Non | 6.44 % | 5.33 % | 116,753 | 14.69 | 22 | -0.5369 % | 1,852.5 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.X | FixedReset Disc | -6.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 9.88 Evaluated at bid price : 9.88 Bid-YTW : 6.08 % |
| NA.PR.E | FixedReset Disc | -4.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.40 Evaluated at bid price : 15.40 Bid-YTW : 5.48 % |
| TRP.PR.H | FloatingReset | -3.90 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 7.40 Evaluated at bid price : 7.40 Bid-YTW : 4.93 % |
| HSE.PR.A | FixedReset Disc | -3.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 6.75 Evaluated at bid price : 6.75 Bid-YTW : 8.31 % |
| IAF.PR.G | FixedReset Ins Non | -3.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.50 Evaluated at bid price : 15.50 Bid-YTW : 5.48 % |
| PVS.PR.H | SplitShare | -3.61 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2027-02-28 Maturity Price : 25.00 Evaluated at bid price : 24.00 Bid-YTW : 5.46 % |
| CU.PR.C | FixedReset Disc | -3.59 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.30 Evaluated at bid price : 15.30 Bid-YTW : 4.85 % |
| PWF.PR.P | FixedReset Disc | -3.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 9.52 Evaluated at bid price : 9.52 Bid-YTW : 5.60 % |
| MFC.PR.J | FixedReset Ins Non | -3.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.67 Evaluated at bid price : 15.67 Bid-YTW : 5.39 % |
| SLF.PR.G | FixedReset Ins Non | -3.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 8.90 Evaluated at bid price : 8.90 Bid-YTW : 5.36 % |
| BMO.PR.W | FixedReset Disc | -2.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 14.70 Evaluated at bid price : 14.70 Bid-YTW : 5.14 % |
| TRP.PR.C | FixedReset Disc | -2.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 8.91 Evaluated at bid price : 8.91 Bid-YTW : 5.81 % |
| TRP.PR.K | FixedReset Disc | -2.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 22.33 Evaluated at bid price : 22.64 Bid-YTW : 5.44 % |
| BIP.PR.F | FixedReset Disc | -2.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 6.40 % |
| RY.PR.Z | FixedReset Disc | -2.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.30 Evaluated at bid price : 15.30 Bid-YTW : 4.81 % |
| RY.PR.H | FixedReset Disc | -2.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.46 Evaluated at bid price : 15.46 Bid-YTW : 4.82 % |
| CM.PR.Q | FixedReset Disc | -2.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.00 Evaluated at bid price : 15.00 Bid-YTW : 5.56 % |
| TD.PF.A | FixedReset Disc | -1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.24 Evaluated at bid price : 15.24 Bid-YTW : 4.94 % |
| NA.PR.G | FixedReset Disc | -1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 17.25 Evaluated at bid price : 17.25 Bid-YTW : 5.27 % |
| MFC.PR.F | FixedReset Ins Non | -1.93 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 9.15 Evaluated at bid price : 9.15 Bid-YTW : 5.26 % |
| BAM.PR.C | Floater | -1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 7.80 Evaluated at bid price : 7.80 Bid-YTW : 5.60 % |
| BAM.PR.R | FixedReset Disc | -1.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 12.25 Evaluated at bid price : 12.25 Bid-YTW : 5.85 % |
| HSE.PR.C | FixedReset Disc | -1.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 11.35 Evaluated at bid price : 11.35 Bid-YTW : 8.85 % |
| BMO.PR.E | FixedReset Disc | -1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 17.25 Evaluated at bid price : 17.25 Bid-YTW : 5.11 % |
| IFC.PR.A | FixedReset Ins Non | -1.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 11.65 Evaluated at bid price : 11.65 Bid-YTW : 5.28 % |
| IFC.PR.G | FixedReset Ins Non | -1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.93 Evaluated at bid price : 15.93 Bid-YTW : 5.43 % |
| SLF.PR.J | FloatingReset | -1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 9.06 Evaluated at bid price : 9.06 Bid-YTW : 4.38 % |
| BAM.PR.K | Floater | -1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 7.85 Evaluated at bid price : 7.85 Bid-YTW : 5.56 % |
| CM.PR.R | FixedReset Disc | -1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 18.32 Evaluated at bid price : 18.32 Bid-YTW : 5.46 % |
| TD.PF.C | FixedReset Disc | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.52 Evaluated at bid price : 15.52 Bid-YTW : 4.98 % |
| MFC.PR.L | FixedReset Ins Non | -1.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 13.55 Evaluated at bid price : 13.55 Bid-YTW : 5.40 % |
| BMO.PR.T | FixedReset Disc | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 14.60 Evaluated at bid price : 14.60 Bid-YTW : 5.08 % |
| CM.PR.O | FixedReset Disc | -1.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 14.20 Evaluated at bid price : 14.20 Bid-YTW : 5.43 % |
| NA.PR.A | FixedReset Disc | -1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 23.01 Evaluated at bid price : 23.51 Bid-YTW : 5.53 % |
| BAM.PR.B | Floater | -1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 7.94 Evaluated at bid price : 7.94 Bid-YTW : 5.49 % |
| PWF.PR.T | FixedReset Disc | -1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.19 Evaluated at bid price : 15.19 Bid-YTW : 5.28 % |
| BMO.PR.F | FixedReset Disc | -1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 21.13 Evaluated at bid price : 21.13 Bid-YTW : 5.07 % |
| NA.PR.C | FixedReset Disc | -1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 18.30 Evaluated at bid price : 18.30 Bid-YTW : 5.52 % |
| CM.PR.P | FixedReset Disc | -1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 14.75 Evaluated at bid price : 14.75 Bid-YTW : 5.26 % |
| BAM.PR.T | FixedReset Disc | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 12.61 Evaluated at bid price : 12.61 Bid-YTW : 5.85 % |
| BIP.PR.E | FixedReset Disc | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 6.27 % |
| BAM.PF.G | FixedReset Disc | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 14.41 Evaluated at bid price : 14.41 Bid-YTW : 5.91 % |
| W.PR.M | FixedReset Disc | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 23.71 Evaluated at bid price : 24.82 Bid-YTW : 5.26 % |
| BNS.PR.I | FixedReset Disc | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 17.63 Evaluated at bid price : 17.63 Bid-YTW : 4.76 % |
| RY.PR.S | FixedReset Disc | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 17.67 Evaluated at bid price : 17.67 Bid-YTW : 4.64 % |
| NA.PR.X | FixedReset Disc | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 23.78 Evaluated at bid price : 24.31 Bid-YTW : 5.59 % |
| BAM.PR.Z | FixedReset Disc | -1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 5.86 % |
| TD.PF.B | FixedReset Disc | -1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.37 Evaluated at bid price : 15.37 Bid-YTW : 4.92 % |
| GWO.PR.I | Deemed-Retractible | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 19.91 Evaluated at bid price : 19.91 Bid-YTW : 5.67 % |
| BIP.PR.B | FixedReset Disc | -1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 22.78 Evaluated at bid price : 23.50 Bid-YTW : 5.83 % |
| NA.PR.S | FixedReset Disc | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.00 Evaluated at bid price : 15.00 Bid-YTW : 5.30 % |
| BIK.PR.A | FixedReset Disc | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 22.76 Evaluated at bid price : 23.75 Bid-YTW : 6.13 % |
| ELF.PR.H | Perpetual-Discount | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 23.56 Evaluated at bid price : 23.84 Bid-YTW : 5.86 % |
| TD.PF.J | FixedReset Disc | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 17.16 Evaluated at bid price : 17.16 Bid-YTW : 5.08 % |
| MFC.PR.G | FixedReset Ins Non | 1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 16.20 Evaluated at bid price : 16.20 Bid-YTW : 5.32 % |
| ELF.PR.G | Perpetual-Discount | 1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 21.39 Evaluated at bid price : 21.39 Bid-YTW : 5.65 % |
| BAM.PF.B | FixedReset Disc | 1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.20 Evaluated at bid price : 15.20 Bid-YTW : 5.79 % |
| MFC.PR.I | FixedReset Ins Non | 1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 16.64 Evaluated at bid price : 16.64 Bid-YTW : 5.25 % |
| MFC.PR.N | FixedReset Ins Non | 1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 14.53 Evaluated at bid price : 14.53 Bid-YTW : 5.23 % |
| CCS.PR.C | Deemed-Retractible | 2.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 22.01 Evaluated at bid price : 22.25 Bid-YTW : 5.62 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| IAF.PR.I | FixedReset Ins Non | 155,580 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 17.08 Evaluated at bid price : 17.08 Bid-YTW : 5.14 % |
| PWF.PR.P | FixedReset Disc | 77,629 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 9.52 Evaluated at bid price : 9.52 Bid-YTW : 5.60 % |
| CM.PR.R | FixedReset Disc | 56,101 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 18.32 Evaluated at bid price : 18.32 Bid-YTW : 5.46 % |
| PWF.PR.I | Perpetual-Discount | 53,407 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 24.64 Evaluated at bid price : 24.90 Bid-YTW : 6.11 % |
| BAM.PF.G | FixedReset Disc | 50,077 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 14.41 Evaluated at bid price : 14.41 Bid-YTW : 5.91 % |
| BMO.PR.S | FixedReset Disc | 48,982 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-10 Maturity Price : 15.05 Evaluated at bid price : 15.05 Bid-YTW : 5.11 % |
| There were 40 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: 22.25 – 24.80 Spot Rate : 2.5500 Average : 1.7893 YTW SCENARIO |
| PVS.PR.H | SplitShare | Quote: 24.00 – 24.95 Spot Rate : 0.9500 Average : 0.5510 YTW SCENARIO |
| SLF.PR.J | FloatingReset | Quote: 9.06 – 10.00 Spot Rate : 0.9400 Average : 0.6318 YTW SCENARIO |
| NA.PR.E | FixedReset Disc | Quote: 15.40 – 16.21 Spot Rate : 0.8100 Average : 0.5324 YTW SCENARIO |
| CU.PR.I | FixedReset Disc | Quote: 24.70 – 25.45 Spot Rate : 0.7500 Average : 0.5168 YTW SCENARIO |
| BIP.PR.E | FixedReset Disc | Quote: 20.00 – 20.70 Spot Rate : 0.7000 Average : 0.4961 YTW SCENARIO |