Canada’s headline inflation rate is continuing to slow, bringing consumer price growth closer to the Bank of Canada’s 2-per-cent target.
The Consumer Price Index rose at an annual rate of 2.5 per cent in July, down from 2.7 per cent in June, Statistics Canada said Tuesday. It was the lowest inflation rate since March, 2021, and matched analyst expectations.
Statscan said the deceleration was broad-based, with price declines seen for travel tours, cars and electricity. Adjusted for seasonality, consumer prices rose 0.3 per cent in July.
While shelter is a financial headwind for many households, those costs are moderating slightly. They rose at an annual 5.7 per cent in July, down from 6.2 per cent in June. Mortgage interest costs were up 21 per cent from a year ago, although this is slower than peak increases of roughly 30 per cent.
… and the markets are expecting steady cuts in the policy rate:
2024-8-19, ‘Late in day’
Post Inflation Announcement
| 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 | 0.2575 % | 2,227.6 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2575 % | 4,272.5 |
| Floater | 10.04 % | 10.30 % | 33,845 | 9.23 | 2 | 0.2575 % | 2,462.3 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2021 % | 3,570.7 |
| SplitShare | 4.66 % | 5.62 % | 29,995 | 1.14 | 4 | -0.2021 % | 4,264.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2021 % | 3,327.1 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0409 % | 2,859.1 |
| Perpetual-Discount | 6.02 % | 6.15 % | 54,448 | 13.66 | 31 | 0.0409 % | 3,117.7 |
| FixedReset Disc | 5.42 % | 6.85 % | 137,515 | 12.63 | 62 | -0.0978 % | 2,653.3 |
| Insurance Straight | 5.85 % | 5.97 % | 67,491 | 13.86 | 21 | 0.0959 % | 3,096.0 |
| FloatingReset | 8.75 % | 8.75 % | 24,805 | 10.56 | 3 | 0.0350 % | 2,758.5 |
| FixedReset Prem | 6.69 % | 5.68 % | 236,503 | 12.06 | 5 | 0.4497 % | 2,575.7 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0978 % | 2,712.2 |
| FixedReset Ins Non | 5.29 % | 6.22 % | 98,318 | 13.57 | 14 | -1.0805 % | 2,774.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| SLF.PR.H | FixedReset Ins Non | -24.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 14.67 Evaluated at bid price : 14.67 Bid-YTW : 8.32 % |
| BN.PF.E | FixedReset Disc | -5.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 17.30 Evaluated at bid price : 17.30 Bid-YTW : 8.03 % |
| BIP.PR.A | FixedReset Disc | -3.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 7.73 % |
| CM.PR.Q | FixedReset Disc | -2.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 22.70 Evaluated at bid price : 23.25 Bid-YTW : 6.08 % |
| CU.PR.C | FixedReset Disc | -2.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 19.70 Evaluated at bid price : 19.70 Bid-YTW : 6.85 % |
| PWF.PR.K | Perpetual-Discount | -1.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 20.01 Evaluated at bid price : 20.01 Bid-YTW : 6.26 % |
| BN.PF.B | FixedReset Disc | -1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 20.95 Evaluated at bid price : 20.95 Bid-YTW : 7.06 % |
| BN.PR.Z | FixedReset Disc | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 21.20 Evaluated at bid price : 21.20 Bid-YTW : 7.22 % |
| CU.PR.J | Perpetual-Discount | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 5.97 % |
| PWF.PR.Z | Perpetual-Discount | 1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 21.15 Evaluated at bid price : 21.15 Bid-YTW : 6.16 % |
| MFC.PR.Q | FixedReset Ins Non | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 22.91 Evaluated at bid price : 24.08 Bid-YTW : 5.93 % |
| FTS.PR.M | FixedReset Disc | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 20.15 Evaluated at bid price : 20.15 Bid-YTW : 6.81 % |
| NA.PR.E | FixedReset Disc | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 23.17 Evaluated at bid price : 24.70 Bid-YTW : 5.68 % |
| BN.PF.H | FixedReset Disc | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 23.89 Evaluated at bid price : 24.30 Bid-YTW : 7.26 % |
| MFC.PR.M | FixedReset Ins Non | 1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 21.43 Evaluated at bid price : 21.43 Bid-YTW : 6.32 % |
| TD.PF.I | FixedReset Prem | 1.37 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.87 Bid-YTW : 5.26 % |
| BN.PF.I | FixedReset Disc | 1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 22.85 Evaluated at bid price : 23.63 Bid-YTW : 7.05 % |
| FTS.PR.K | FixedReset Disc | 1.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 20.02 Evaluated at bid price : 20.02 Bid-YTW : 6.51 % |
| FTS.PR.H | FixedReset Disc | 1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 14.98 Evaluated at bid price : 14.98 Bid-YTW : 7.23 % |
| CU.PR.F | Perpetual-Discount | 1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 19.01 Evaluated at bid price : 19.01 Bid-YTW : 5.95 % |
| PWF.PR.P | FixedReset Disc | 2.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 15.02 Evaluated at bid price : 15.02 Bid-YTW : 7.27 % |
| IFC.PR.A | FixedReset Ins Non | 2.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 19.10 Evaluated at bid price : 19.10 Bid-YTW : 6.34 % |
| POW.PR.C | Perpetual-Discount | 2.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 23.69 Evaluated at bid price : 23.96 Bid-YTW : 6.13 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| ENB.PR.D | FixedReset Disc | 131,478 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 18.01 Evaluated at bid price : 18.01 Bid-YTW : 7.53 % |
| TD.PF.I | FixedReset Prem | 86,892 | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.87 Bid-YTW : 5.26 % |
| MFC.PR.F | FixedReset Ins Non | 76,949 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 6.58 % |
| ENB.PR.B | FixedReset Disc | 57,003 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 17.57 Evaluated at bid price : 17.57 Bid-YTW : 7.69 % |
| MFC.PR.M | FixedReset Ins Non | 55,400 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 21.43 Evaluated at bid price : 21.43 Bid-YTW : 6.32 % |
| ENB.PR.F | FixedReset Disc | 54,672 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-08-20 Maturity Price : 18.49 Evaluated at bid price : 18.49 Bid-YTW : 7.52 % |
| There were 16 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| SLF.PR.H | FixedReset Ins Non | Quote: 14.67 – 20.35 Spot Rate : 5.6800 Average : 4.2633 YTW SCENARIO |
| IFC.PR.C | FixedReset Ins Non | Quote: 21.00 – 22.50 Spot Rate : 1.5000 Average : 0.8907 YTW SCENARIO |
| BIP.PR.A | FixedReset Disc | Quote: 21.00 – 22.60 Spot Rate : 1.6000 Average : 1.1773 YTW SCENARIO |
| GWO.PR.S | Insurance Straight | Quote: 21.80 – 22.67 Spot Rate : 0.8700 Average : 0.5030 YTW SCENARIO |
| CM.PR.Q | FixedReset Disc | Quote: 23.25 – 24.00 Spot Rate : 0.7500 Average : 0.4928 YTW SCENARIO |
| BN.PF.E | FixedReset Disc | Quote: 17.30 – 18.35 Spot Rate : 1.0500 Average : 0.8211 YTW SCENARIO |