TXPR closed at 536.60, down 0.78% on the day and setting a new 52-week low of 536.33. Volume today was 2.70-million, fifth-highest of the past 21 trading days.
CPD closed at 10.73, down 0.46% on the day. Volume was 142,560, below the median of the past 21 trading days.
ZPR closed at 8.90, down 0.67% on the day after setting a new 52-week low of 8.88. Volume was 239,970, below the median of the past 21 trading days.
Five-year Canada yields were up sharply to 3.08% today.
The attribution was more of the same, with a new player:
U.S. and Canadian stocks closed modestly higher on Tuesday after four sessions of declines, but investors fretted about weak holiday shopping and rising bond yields added pressure after the Bank of Japan’s surprise tweak of its monetary policy.
Fears about the economic impact of the Federal Reserve’s plan to keep raising U.S. interest rates have weighed heavily on equities since its policy meeting last week.
Adding to pressure on equity prices was an increase in U.S. Treasury yields after the BOJ made a surprise tweak to its bond yield control that allows long-term interest rates to rise more. In the U.S., the yield on the 10-year Treasury rose to 3.68% from 3.59% late Monday. The Canadian 10-year government bond yield was up 13 basis points by late afternoon to just above 3% – its highest level since the end of November.
The BoJ’s move caused much speculation:
Shares tanked, while the yen and bond yields spiked following the decision, which caught off-guard investors who had expected the BOJ to make no changes to its yield curve control (YCC) until Governor Haruhiko Kuroda steps down in April.
In a move explained as seeking to breathe life back into a dormant bond market, the BOJ decided to allow the 10-year bond yield to move 50 basis points either side of its 0-per-cent target, wider than the previous 25 basis point band.
But the central bank kept its yield target unchanged and said it will sharply increase bond buying, a sign the move was a fine-tuning of existing ultraloose monetary policy rather than a withdrawal of stimulus.
Mr. Kuroda said the move was aimed at ironing out distortions in the shape of the yield curve and ensuring the benefits of the bank’s stimulus program are directed to markets and companies.
…
The BOJ’s ultralow rate policy and its relentless bond buying to defend its yield cap have drawn increasing public criticism for distorting the yield curve, draining market liquidity and fuelling an unwelcome yen plunge that inflated the cost of raw material imports.Much of that public anger has centred on Mr. Kuroda, who was hand-picked by former prime minister Shinzo Abe as BOJ governor a decade ago to rev up sluggish consumer demand with massive monetary stimulus.
In a rare acknowledgment of the drawbacks of his policy, Mr. Kuroda said the decision to widen the yield band now came from surveys showing a sharp deterioration in bond market functions.
He also said the BOJ must look not just at downside but upside risks to growth and inflation, signalling that there was scope for a withdrawal of stimulus next year if economic conditions allow.
| 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 | 0.0809 % | 2,377.6 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0809 % | 4,560.3 |
| Floater | 9.12 % | 9.15 % | 47,996 | 10.28 | 2 | 0.0809 % | 2,628.1 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.8735 % | 3,209.9 |
| SplitShare | 5.30 % | 8.09 % | 61,169 | 2.73 | 8 | 0.8735 % | 3,833.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.8735 % | 2,990.9 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3451 % | 2,635.7 |
| Perpetual-Discount | 6.46 % | 6.59 % | 109,803 | 13.00 | 35 | -0.3451 % | 2,874.1 |
| FixedReset Disc | 5.64 % | 7.50 % | 103,341 | 12.19 | 62 | -0.9344 % | 2,129.5 |
| Insurance Straight | 6.45 % | 6.55 % | 120,290 | 13.17 | 20 | -0.2499 % | 2,783.7 |
| FloatingReset | 9.72 % | 9.36 % | 35,649 | 10.10 | 2 | 0.0657 % | 2,473.1 |
| FixedReset Prem | 6.62 % | 6.50 % | 209,478 | 12.74 | 2 | -0.2774 % | 2,372.9 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.9344 % | 2,176.8 |
| FixedReset Ins Non | 5.62 % | 7.61 % | 60,863 | 12.25 | 14 | -0.4176 % | 2,235.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.S | Perpetual-Discount | -4.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 17.78 Evaluated at bid price : 17.78 Bid-YTW : 6.88 % |
| BN.PF.E | FixedReset Disc | -3.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 14.53 Evaluated at bid price : 14.53 Bid-YTW : 9.00 % |
| PWF.PR.T | FixedReset Disc | -3.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 17.41 Evaluated at bid price : 17.41 Bid-YTW : 7.71 % |
| CU.PR.C | FixedReset Disc | -3.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 18.43 Evaluated at bid price : 18.43 Bid-YTW : 7.32 % |
| RY.PR.M | FixedReset Disc | -2.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 17.55 Evaluated at bid price : 17.55 Bid-YTW : 7.33 % |
| BN.PF.I | FixedReset Disc | -2.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 21.51 Evaluated at bid price : 21.51 Bid-YTW : 7.51 % |
| BN.PF.B | FixedReset Disc | -2.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 16.11 Evaluated at bid price : 16.11 Bid-YTW : 8.61 % |
| BN.PR.R | FixedReset Disc | -2.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 13.75 Evaluated at bid price : 13.75 Bid-YTW : 8.69 % |
| TRP.PR.C | FixedReset Disc | -2.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 11.41 Evaluated at bid price : 11.41 Bid-YTW : 8.72 % |
| TRP.PR.D | FixedReset Disc | -2.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 15.10 Evaluated at bid price : 15.10 Bid-YTW : 8.81 % |
| BN.PF.F | FixedReset Disc | -2.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 16.06 Evaluated at bid price : 16.06 Bid-YTW : 8.79 % |
| BNS.PR.I | FixedReset Disc | -2.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 19.66 Evaluated at bid price : 19.66 Bid-YTW : 6.96 % |
| MIC.PR.A | Perpetual-Discount | -2.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 18.05 Evaluated at bid price : 18.05 Bid-YTW : 7.53 % |
| NA.PR.E | FixedReset Disc | -2.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 19.01 Evaluated at bid price : 19.01 Bid-YTW : 7.41 % |
| BN.PF.A | FixedReset Disc | -1.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 18.02 Evaluated at bid price : 18.02 Bid-YTW : 8.17 % |
| GWO.PR.N | FixedReset Ins Non | -1.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 12.08 Evaluated at bid price : 12.08 Bid-YTW : 7.80 % |
| BN.PF.G | FixedReset Disc | -1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 15.35 Evaluated at bid price : 15.35 Bid-YTW : 8.75 % |
| TD.PF.J | FixedReset Disc | -1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 20.68 Evaluated at bid price : 20.68 Bid-YTW : 6.97 % |
| TRP.PR.E | FixedReset Disc | -1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 14.75 Evaluated at bid price : 14.75 Bid-YTW : 8.83 % |
| TRP.PR.B | FixedReset Disc | -1.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 10.82 Evaluated at bid price : 10.82 Bid-YTW : 8.78 % |
| BIP.PR.E | FixedReset Disc | -1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 19.15 Evaluated at bid price : 19.15 Bid-YTW : 7.86 % |
| BN.PR.T | FixedReset Disc | -1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 14.45 Evaluated at bid price : 14.45 Bid-YTW : 8.45 % |
| CCS.PR.C | Insurance Straight | -1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 18.84 Evaluated at bid price : 18.84 Bid-YTW : 6.68 % |
| NA.PR.W | FixedReset Disc | -1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 16.18 Evaluated at bid price : 16.18 Bid-YTW : 7.88 % |
| TD.PF.B | FixedReset Disc | -1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 17.00 Evaluated at bid price : 17.00 Bid-YTW : 7.60 % |
| RY.PR.H | FixedReset Disc | -1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 17.05 Evaluated at bid price : 17.05 Bid-YTW : 7.52 % |
| TD.PF.E | FixedReset Disc | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 18.90 Evaluated at bid price : 18.90 Bid-YTW : 7.18 % |
| CM.PR.S | FixedReset Disc | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 20.26 Evaluated at bid price : 20.26 Bid-YTW : 6.81 % |
| PVS.PR.J | SplitShare | -1.21 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2028-02-29 Maturity Price : 25.00 Evaluated at bid price : 20.45 Bid-YTW : 8.95 % |
| POW.PR.D | Perpetual-Discount | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 19.32 Evaluated at bid price : 19.32 Bid-YTW : 6.61 % |
| BMO.PR.W | FixedReset Disc | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 17.15 Evaluated at bid price : 17.15 Bid-YTW : 7.42 % |
| BMO.PR.S | FixedReset Disc | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 17.50 Evaluated at bid price : 17.50 Bid-YTW : 7.49 % |
| MFC.PR.N | FixedReset Ins Non | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 16.43 Evaluated at bid price : 16.43 Bid-YTW : 7.73 % |
| BN.PF.H | FixedReset Disc | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 22.58 Evaluated at bid price : 23.25 Bid-YTW : 7.24 % |
| MFC.PR.L | FixedReset Ins Non | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 16.10 Evaluated at bid price : 16.10 Bid-YTW : 7.85 % |
| BN.PF.C | Perpetual-Discount | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 18.04 Evaluated at bid price : 18.04 Bid-YTW : 6.76 % |
| GWO.PR.Y | Insurance Straight | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 17.28 Evaluated at bid price : 17.28 Bid-YTW : 6.55 % |
| IFC.PR.K | Perpetual-Discount | -1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 20.45 Evaluated at bid price : 20.45 Bid-YTW : 6.46 % |
| PVS.PR.K | SplitShare | 2.08 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2029-05-31 Maturity Price : 25.00 Evaluated at bid price : 20.60 Bid-YTW : 8.09 % |
| PVS.PR.G | SplitShare | 5.89 % | YTW SCENARIO Maturity Type : Option Certainty Maturity Date : 2026-02-28 Maturity Price : 25.00 Evaluated at bid price : 22.65 Bid-YTW : 8.43 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| PWF.PR.S | Perpetual-Discount | 101,553 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 17.78 Evaluated at bid price : 17.78 Bid-YTW : 6.88 % |
| TD.PF.K | FixedReset Disc | 68,322 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 19.80 Evaluated at bid price : 19.80 Bid-YTW : 7.11 % |
| MFC.PR.L | FixedReset Ins Non | 50,752 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 16.10 Evaluated at bid price : 16.10 Bid-YTW : 7.85 % |
| TD.PF.C | FixedReset Disc | 44,828 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 16.96 Evaluated at bid price : 16.96 Bid-YTW : 7.55 % |
| NA.PR.C | FixedReset Prem | 37,282 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-20 Maturity Price : 23.30 Evaluated at bid price : 25.42 Bid-YTW : 6.50 % |
| PVS.PR.H | SplitShare | 36,504 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2027-02-28 Maturity Price : 25.00 Evaluated at bid price : 21.40 Bid-YTW : 9.00 % |
| There were 73 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BN.PR.N | Perpetual-Discount | Quote: 17.76 – 19.00 Spot Rate : 1.2400 Average : 0.8523 YTW SCENARIO |
| CIU.PR.A | Perpetual-Discount | Quote: 17.83 – 18.83 Spot Rate : 1.0000 Average : 0.6691 YTW SCENARIO |
| NA.PR.W | FixedReset Disc | Quote: 16.18 – 17.30 Spot Rate : 1.1200 Average : 0.8187 YTW SCENARIO |
| BIP.PR.E | FixedReset Disc | Quote: 19.15 – 20.40 Spot Rate : 1.2500 Average : 0.9607 YTW SCENARIO |
| PWF.PR.T | FixedReset Disc | Quote: 17.41 – 18.10 Spot Rate : 0.6900 Average : 0.4133 YTW SCENARIO |
| GWO.PR.P | Insurance Straight | Quote: 20.51 – 21.50 Spot Rate : 0.9900 Average : 0.7229 YTW SCENARIO |