Canadian inflation stepped on the gas!
Canada’s annual inflation rate in May accelerated more than expected to 3.2 per cent, a 29-month high, data showed on Monday, as the impact of higher crude oil prices due to the Iran conflict continued to filter through gasoline costs.
Analysts polled by Reuters had estimated the annual inflation rate to touch 3 per cent in May, up from 2.8 per cent in April.
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Gasoline prices in May rose by 33.2 per cent on a year-over-year basis. Consumers in May shelled out more for gasoline than from its previous peak four years ago when Russia invaded Ukraine, Statscan said.This led to an increase in the cost of transportation, which accounts for almost 18.5 per cent of the CPI basket, posting a 9-per-cent annual increase last month.
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Cost of food, which also contributes around 17 per cent of the CPI basket, rose 3.8 per cent in May from 3.5 per cent in April, Statscan said, adding that this was fuelled by an increase in prices of fresh fruits and vegetables which rose by 5.3 per cent and 9 per cent respectively in May.The impact of higher transportation and food prices were largely offset by shelter costs, the biggest contributor to the CPI basket at close to 30 per cent. Shelter costs rose by 1.7 per cent in May following a 1.8-per-cent increase in April, data showed, especially led by a reduction in mortgage costs which shrunk by 0.2 per cent last month.
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CPI-median, the centremost component of the CPI basket, was at 2.1 per cent, while CPI-trim, which excludes the most extreme price changes, was at 2 per cent.
The day was enlivened by the closing of the GWO.PF.A Straight 5.7% issue.
| 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 | 5.64 % | 6.04 % | 23,224 | 14.78 | 1 | -0.5705 % | 2,600.6 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.8704 % | 4,909.1 |
| Floater | 5.54 % | 5.65 % | 39,731 | 14.48 | 3 | -0.8704 % | 2,829.1 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1031 % | 3,634.2 |
| SplitShare | 4.79 % | 4.48 % | 52,390 | 2.74 | 5 | 0.1031 % | 4,340.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1031 % | 3,386.2 |
| Perpetual-Premium | 5.70 % | 5.73 % | 70,548 | 14.01 | 7 | -0.0964 % | 3,064.2 |
| Perpetual-Discount | 5.59 % | 5.68 % | 40,404 | 14.31 | 29 | 0.0770 % | 3,377.9 |
| FixedReset Disc | 5.67 % | 5.99 % | 117,076 | 13.80 | 19 | -0.4626 % | 3,281.5 |
| Insurance Straight | 5.51 % | 5.56 % | 46,259 | 14.55 | 22 | -0.4723 % | 3,268.3 |
| FloatingReset | 4.70 % | 4.73 % | 19,448 | 16.06 | 1 | 0.0000 % | 4,023.4 |
| FixedReset Prem | 5.93 % | 4.58 % | 82,430 | 2.33 | 29 | 0.0000 % | 2,649.0 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4626 % | 3,354.4 |
| FixedReset Ins Non | 5.15 % | 5.33 % | 67,623 | 14.59 | 14 | 0.0389 % | 3,210.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IFC.PR.E | Insurance Straight | -8.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 21.30 Evaluated at bid price : 21.57 Bid-YTW : 6.05 % |
| BN.PR.T | FixedReset Disc | -2.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 21.58 Evaluated at bid price : 21.95 Bid-YTW : 6.06 % |
| PWF.PR.A | Floater | -1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 14.46 Evaluated at bid price : 14.46 Bid-YTW : 5.46 % |
| NA.PR.K | FixedReset Prem | -1.18 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-05-01 Maturity Price : 25.00 Evaluated at bid price : 27.67 Bid-YTW : 4.10 % |
| IFC.PR.M | Perpetual-Premium | -1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 24.26 Evaluated at bid price : 24.65 Bid-YTW : 5.59 % |
| BN.PR.R | FixedReset Disc | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 22.37 Evaluated at bid price : 23.17 Bid-YTW : 5.79 % |
| MFC.PR.B | Insurance Straight | 1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 22.21 Evaluated at bid price : 22.48 Bid-YTW : 5.19 % |
| CIU.PR.A | Perpetual-Discount | 1.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 20.82 Evaluated at bid price : 20.82 Bid-YTW : 5.58 % |
| MFC.PR.J | FixedReset Ins Non | 1.89 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-03-19 Maturity Price : 25.00 Evaluated at bid price : 25.29 Bid-YTW : 5.53 % |
| PWF.PR.S | Perpetual-Discount | 1.93 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 21.39 Evaluated at bid price : 21.66 Bid-YTW : 5.62 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| GWO.PF.A | Perpetual-Discount | 509,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 24.46 Evaluated at bid price : 24.85 Bid-YTW : 5.76 % |
| SLF.PR.H | FixedReset Ins Non | 54,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 23.25 Evaluated at bid price : 24.20 Bid-YTW : 5.36 % |
| PWF.PR.A | Floater | 30,900 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 14.46 Evaluated at bid price : 14.46 Bid-YTW : 5.46 % |
| TD.PF.I | FixedReset Prem | 20,200 | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.99 Bid-YTW : 3.99 % |
| IFC.PR.I | Insurance Straight | 16,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 24.21 Evaluated at bid price : 24.71 Bid-YTW : 5.46 % |
| IFC.PR.K | Insurance Straight | 10,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-06-22 Maturity Price : 23.40 Evaluated at bid price : 23.85 Bid-YTW : 5.51 % |
| There were 0 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 |
| IFC.PR.E | Insurance Straight | Quote: 21.57 – 23.88 Spot Rate : 2.3100 Average : 1.3132 YTW SCENARIO |
| GWO.PR.Y | Insurance Straight | Quote: 20.86 – 22.22 Spot Rate : 1.3600 Average : 0.8685 YTW SCENARIO |
| PWF.PR.P | FixedReset Disc | Quote: 20.36 – 21.50 Spot Rate : 1.1400 Average : 0.6924 YTW SCENARIO |
| NA.PR.C | FixedReset Prem | Quote: 26.44 – 27.44 Spot Rate : 1.0000 Average : 0.6003 YTW SCENARIO |
| BN.PR.T | FixedReset Disc | Quote: 21.95 – 23.55 Spot Rate : 1.6000 Average : 1.2138 YTW SCENARIO |
| IFC.PR.M | Perpetual-Premium | Quote: 24.65 – 25.45 Spot Rate : 0.8000 Average : 0.4779 YTW SCENARIO |