US wholesale inflation ticked up:
The Producer Price Index, a closely watched gauge of wholesale inflation, rose 1.1% in May, lifting the annual rate to 6.5%, its highest since November 2022, according to Bureau of Labor Statistics data released Thursday.
…
Excluding food and energy prices, a core measurement of PPI rose 0.4% from April, holding at 4.9% annually.When also stripping out the price changes for “trade services” – a volatile category that measures profit margins for wholesalers and retailers – in addition to energy and food, that index rose 0.8% in May (a four-year high) and 5.1% annually, the largest rise since October 2022.
And the European Central Bank hiked its policy rate:
The European Central Bank on Thursday became the first major central bank to raise interest rates in response to the Iran war as policy makers around the world, including new U.S. Federal Reserve Chair Kevin Warsh, wrestle with how to confront the inflation fed by sharply higher oil prices.
The ECB’s rate-setting council raised its benchmark rate to 2.25 per cent from 2 per cent, where it had been for a year. The move comes ahead of rate-setting meetings next week at the Fed, the Bank of Japan and the Bank of England.
…
The bank’s future decisions depend to a great extent on how long energy prices remain elevated and how high they go, ECB President Christine Lagarde said at a post-decision news conference. She said the bank was “well positioned to navigate the uncertainty caused by the war” and would “closely monitor the situation and follow a data-dependent and meeting-by-meeting approach.” She said the bank was “not pre-committing to a particular rate path.”She said oil prices were expected to “lift inflation further over the summer” and that inflation was expected to remain “well above target” into the first half of next year. The Strait of Hormuz has been closed to most ship traffic for 103 days now.
Central banks in Australia and the Philippines have raises rates since the start of the war, and attention is focusing now on decisions in larger economies. For its part, the U.S. Federal Reserve is expected to keep its key interest rate unchanged when it meets next week with new chair Warsh, appointed earlier this year by President Donald Trump.
| 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 | 5.55 % | 5.74 % | 25,843 | 14.73 | 1 | 2.0173 % | 2,640.8 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.6776 % | 5,019.8 |
| Floater | 5.42 % | 5.64 % | 38,728 | 14.37 | 3 | 0.6776 % | 2,892.9 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0396 % | 3,639.7 |
| SplitShare | 4.79 % | 4.35 % | 49,209 | 2.77 | 5 | 0.0396 % | 4,346.5 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0396 % | 3,391.3 |
| Perpetual-Premium | 5.68 % | 5.56 % | 75,055 | 6.54 | 7 | -0.0678 % | 3,075.7 |
| Perpetual-Discount | 5.58 % | 5.64 % | 41,212 | 14.38 | 28 | 0.0330 % | 3,378.4 |
| FixedReset Disc | 5.63 % | 5.98 % | 128,444 | 13.79 | 19 | 0.0205 % | 3,302.0 |
| Insurance Straight | 5.46 % | 5.55 % | 46,877 | 14.60 | 22 | 0.1601 % | 3,301.3 |
| FloatingReset | 4.64 % | 4.65 % | 25,669 | 16.21 | 1 | -1.2346 % | 4,103.5 |
| FixedReset Prem | 5.93 % | 4.70 % | 90,812 | 2.26 | 29 | -0.0308 % | 2,649.2 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0205 % | 3,375.3 |
| FixedReset Ins Non | 5.14 % | 5.40 % | 71,236 | 14.48 | 14 | 0.0090 % | 3,213.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| SLF.PR.H | FixedReset Ins Non | -1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 23.24 Evaluated at bid price : 24.16 Bid-YTW : 5.43 % |
| FTS.PR.F | Perpetual-Discount | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 22.25 Evaluated at bid price : 22.52 Bid-YTW : 5.47 % |
| SLF.PR.J | FloatingReset | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 4.65 % |
| CU.PR.G | Perpetual-Discount | -1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 5.59 % |
| FTS.PR.M | FixedReset Prem | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 23.26 Evaluated at bid price : 24.85 Bid-YTW : 5.60 % |
| SLF.PR.E | Insurance Straight | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 21.64 Evaluated at bid price : 21.89 Bid-YTW : 5.14 % |
| GWO.PR.R | Insurance Straight | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 21.36 Evaluated at bid price : 21.63 Bid-YTW : 5.55 % |
| SLF.PR.D | Insurance Straight | 1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 21.58 Evaluated at bid price : 21.84 Bid-YTW : 5.09 % |
| GWO.PR.Q | Insurance Straight | 1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 22.82 Evaluated at bid price : 23.10 Bid-YTW : 5.58 % |
| BN.PR.B | Floater | 1.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 14.09 Evaluated at bid price : 14.09 Bid-YTW : 5.64 % |
| BN.PF.K | Ratchet | 2.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 19.39 Evaluated at bid price : 17.70 Bid-YTW : 5.74 % |
| GWO.PR.N | FixedReset Ins Non | 2.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 19.48 Evaluated at bid price : 19.48 Bid-YTW : 5.60 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| SLF.PR.J | FloatingReset | 125,700 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 4.65 % |
| ENB.PR.J | FixedReset Disc | 35,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 22.95 Evaluated at bid price : 23.86 Bid-YTW : 6.05 % |
| FFH.PR.K | FixedReset Prem | 30,660 | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.36 Bid-YTW : 4.50 % |
| ENB.PF.A | FixedReset Disc | 25,178 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 22.84 Evaluated at bid price : 23.85 Bid-YTW : 6.06 % |
| SLF.PR.C | Insurance Straight | 18,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 21.56 Evaluated at bid price : 21.82 Bid-YTW : 5.10 % |
| ENB.PR.P | FixedReset Disc | 18,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-11 Maturity Price : 22.95 Evaluated at bid price : 23.87 Bid-YTW : 5.98 % |
| There were 4 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| See TMX DataLinx: ‘Last’ != ‘Close’ and the posts linked therein for an idea of why these quotes are so horrible. | ||
| Issue | Index | Quote Data and Yield Notes |
| ENB.PF.E | FixedReset Disc | Quote: 23.28 – 24.70 Spot Rate : 1.4200 Average : 0.9927 YTW SCENARIO |
| CU.PR.J | Perpetual-Discount | Quote: 21.66 – 23.00 Spot Rate : 1.3400 Average : 0.9657 YTW SCENARIO |
| BN.PR.B | Floater | Quote: 14.09 – 15.17 Spot Rate : 1.0800 Average : 0.8295 YTW SCENARIO |
| ENB.PR.H | FixedReset Disc | Quote: 23.70 – 24.50 Spot Rate : 0.8000 Average : 0.5576 YTW SCENARIO |
| CU.PR.G | Perpetual-Discount | Quote: 20.30 – 20.80 Spot Rate : 0.5000 Average : 0.3248 YTW SCENARIO |
| ENB.PF.K | FixedReset Prem | Quote: 25.50 – 25.85 Spot Rate : 0.3500 Average : 0.2188 YTW SCENARIO |