There are no magic wands in this world:
U.S. stock index futures extended losses sharply on Tuesday, as hotter-than-expected consumer inflation readings smashed market speculations of an early start to interest rate cuts this year.
A Labor Department report showed the Consumer Price Index (CPI) rose 0.3% on a monthly basis in January, above the 0.2% increase expected by economists polled by Reuters. Annually, it increased 3.1% versus the 2.9% estimated growth.
Excluding volatile food and energy components, the core figure rose 0.4% month-on-month in January, compared with the estimated 0.3% rise. Annually, it gained 3.9% versus the estimated 3.7% increase.
… and …
Interest rate swap markets, which capture traders’ views on future monetary policy, now suggest only 40 per cent odds that the bank will cut rates in June, according to Refinitiv Eikon data. That’s down from approximately 50-50 odds last Friday as Statistics Canada released a surprisingly strong jobs report, and 82 per cent odds just prior to a blowout jobs report in the U.S. on Feb. 2. The market is now pricing in only about half a percentage point decrease in the Bank of Canada key lending rate over the course of this year.
| 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 | 0.0424 % | 2,281.3 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0424 % | 4,375.6 |
| Floater | 10.67 % | 10.92 % | 49,880 | 8.79 | 2 | 0.0424 % | 2,521.7 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3354 % | 3,439.1 |
| SplitShare | 4.89 % | 7.12 % | 49,633 | 1.90 | 7 | 0.3354 % | 4,107.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3354 % | 3,204.5 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1976 % | 2,635.8 |
| Perpetual-Discount | 6.52 % | 6.70 % | 48,230 | 12.93 | 33 | -0.1976 % | 2,874.2 |
| FixedReset Disc | 5.60 % | 7.74 % | 118,989 | 12.03 | 59 | 0.2509 % | 2,355.8 |
| Insurance Straight | 6.33 % | 6.51 % | 68,095 | 13.13 | 21 | -0.1927 % | 2,863.7 |
| FloatingReset | 10.01 % | 10.30 % | 35,289 | 9.20 | 3 | 0.1696 % | 2,603.8 |
| FixedReset Prem | 6.93 % | 6.65 % | 167,137 | 3.28 | 1 | 0.1580 % | 2,519.3 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2509 % | 2,408.1 |
| FixedReset Ins Non | 5.44 % | 7.19 % | 94,540 | 12.37 | 14 | -0.3058 % | 2,612.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| GWO.PR.Y | Insurance Straight | -5.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 16.96 Evaluated at bid price : 16.96 Bid-YTW : 6.75 % |
| BMO.PR.Y | FixedReset Disc | -4.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 18.90 Evaluated at bid price : 18.90 Bid-YTW : 8.06 % |
| CU.PR.H | Perpetual-Discount | -2.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 20.40 Evaluated at bid price : 20.40 Bid-YTW : 6.46 % |
| BIP.PR.B | FixedReset Disc | -1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 21.67 Evaluated at bid price : 22.11 Bid-YTW : 9.01 % |
| MIC.PR.A | Perpetual-Discount | -1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 18.51 Evaluated at bid price : 18.51 Bid-YTW : 7.43 % |
| CM.PR.O | FixedReset Disc | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 20.26 Evaluated at bid price : 20.26 Bid-YTW : 7.39 % |
| TD.PF.I | FixedReset Disc | -1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 23.10 Evaluated at bid price : 24.52 Bid-YTW : 6.75 % |
| CU.PR.C | FixedReset Disc | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 18.65 Evaluated at bid price : 18.65 Bid-YTW : 7.93 % |
| MFC.PR.F | FixedReset Ins Non | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 14.84 Evaluated at bid price : 14.84 Bid-YTW : 7.94 % |
| SLF.PR.G | FixedReset Ins Non | -1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 15.00 Evaluated at bid price : 15.00 Bid-YTW : 8.09 % |
| GWO.PR.S | Insurance Straight | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 20.12 Evaluated at bid price : 20.12 Bid-YTW : 6.64 % |
| MFC.PR.J | FixedReset Ins Non | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 22.03 Evaluated at bid price : 22.51 Bid-YTW : 7.08 % |
| GWO.PR.P | Insurance Straight | 1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 20.58 Evaluated at bid price : 20.58 Bid-YTW : 6.68 % |
| BN.PR.Z | FixedReset Disc | 1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 19.71 Evaluated at bid price : 19.71 Bid-YTW : 8.40 % |
| CM.PR.S | FixedReset Disc | 1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 21.91 Evaluated at bid price : 21.91 Bid-YTW : 7.01 % |
| FFH.PR.D | FloatingReset | 1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 20.65 Evaluated at bid price : 20.65 Bid-YTW : 10.22 % |
| RY.PR.J | FixedReset Disc | 1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 20.05 Evaluated at bid price : 20.05 Bid-YTW : 7.74 % |
| IFC.PR.I | Insurance Straight | 1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 6.43 % |
| PVS.PR.J | SplitShare | 1.95 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2028-02-29 Maturity Price : 25.00 Evaluated at bid price : 23.00 Bid-YTW : 6.98 % |
| TD.PF.B | FixedReset Disc | 3.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 7.04 % |
| IFC.PR.F | Insurance Straight | 7.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 20.33 Evaluated at bid price : 20.33 Bid-YTW : 6.63 % |
| BIP.PR.A | FixedReset Disc | 18.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 18.25 Evaluated at bid price : 18.25 Bid-YTW : 9.63 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PF.A | FixedReset Disc | 158,800 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 7.21 % |
| RY.PR.M | FixedReset Disc | 92,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 18.97 Evaluated at bid price : 18.97 Bid-YTW : 7.84 % |
| CM.PR.Q | FixedReset Disc | 82,367 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 19.50 Evaluated at bid price : 19.50 Bid-YTW : 7.89 % |
| POW.PR.C | Perpetual-Discount | 41,366 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 22.24 Evaluated at bid price : 22.51 Bid-YTW : 6.52 % |
| RY.PR.H | FixedReset Disc | 35,327 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 19.81 Evaluated at bid price : 19.81 Bid-YTW : 7.50 % |
| BN.PF.B | FixedReset Disc | 34,945 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-13 Maturity Price : 19.40 Evaluated at bid price : 19.40 Bid-YTW : 8.32 % |
| There were 19 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| EIT.PR.A | SplitShare | Quote: 25.11 – 26.11 Spot Rate : 1.0000 Average : 0.5374 YTW SCENARIO |
| BMO.PR.Y | FixedReset Disc | Quote: 18.90 – 19.90 Spot Rate : 1.0000 Average : 0.6827 YTW SCENARIO |
| GWO.PR.Y | Insurance Straight | Quote: 16.96 – 17.96 Spot Rate : 1.0000 Average : 0.7310 YTW SCENARIO |
| BIP.PR.B | FixedReset Disc | Quote: 22.11 – 23.00 Spot Rate : 0.8900 Average : 0.6583 YTW SCENARIO |
| FFH.PR.I | FixedReset Disc | Quote: 17.18 – 17.89 Spot Rate : 0.7100 Average : 0.4873 YTW SCENARIO |
| MFC.PR.L | FixedReset Ins Non | Quote: 19.46 – 24.06 Spot Rate : 4.6000 Average : 4.3992 YTW SCENARIO |