Another new 52-week high from the TXPR price index today of 713.43, beating the mark of 713.15 set yesterday.
Gas prices had a marked effect on US inflation:
The pace of price hikes slowed sharply last month, helped by a steep decline in gas prices as tensions eased in the Middle East.
Annual inflation measured 3.5% in June, compared to 4.2% in May, according to Consumer Price Index data released Tuesday by the Bureau of Labor Statistics.
However, that’s well above where it stood before the war with Iran broke out in February, when prices were rising at a 2.4% annual rate. Economists polled by FactSet had expected the pace of inflation to slow to 3.8% in June.
On a monthly basis, prices fell by 0.4%, after increasing by 0.5% in May. That marked the largest monthly decline in prices since April 2020.
Elisabeth Buchwald reports:
For the past few months, Americans’ paychecks were essentially being wiped out by inflation. That’s because inflation was growing at a faster rate than wages, a result of slowing wage growth combined with ramped-up inflation stemming from the war with Iran.
But Tuesday’s Consumer Price Index report showed that on an annual basis, prices are rising at 3.5%, which is equal to the annual rate average hourly earnings are growing, per the June employment report.
Elisabeth Buchwald takes issue with Warsh:
In his testimony before the House Financial Services Committee on Tuesday, Federal Reserve Chairman Kevin Warsh claimed that “interest rates don’t favor one class of people versus another.”
“They don’t favor those that have financial assets more than folks that are living off their bi-monthly paychecks,” he went on to say.
That’s not quite true.
John Towfighi reports
This morning’s better-than-expected inflation report prompted a shift in expectations for Fed policy: Markets are now pricing in a 17% chance that the Fed raises interest rates in July, down from a 42% chance one day ago, according to CME FedWatch.
| 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 | -0.0234 % | 2,637.8 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0234 % | 4,967.3 |
| Floater | 5.48 % | 5.59 % | 38,823 | 14.55 | 3 | -0.0234 % | 2,862.7 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1668 % | 3,631.0 |
| SplitShare | 4.80 % | 4.96 % | 64,140 | 2.68 | 5 | 0.1668 % | 4,336.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1668 % | 3,383.3 |
| Perpetual-Premium | 5.70 % | -1.37 % | 55,467 | 0.09 | 7 | -0.0000 % | 3,074.6 |
| Perpetual-Discount | 5.55 % | 5.60 % | 42,318 | 14.48 | 27 | 0.2392 % | 3,400.1 |
| FixedReset Disc | 5.63 % | 5.84 % | 99,210 | 14.04 | 19 | 0.3706 % | 3,377.1 |
| Insurance Straight | 5.42 % | 5.49 % | 51,387 | 14.63 | 20 | 0.2836 % | 3,317.5 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3706 % | 4,123.5 |
| FixedReset Prem | 5.90 % | 4.57 % | 78,940 | 2.27 | 29 | 0.1066 % | 2,662.9 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3706 % | 3,452.1 |
| FixedReset Ins Non | 5.24 % | 5.27 % | 51,364 | 3.10 | 14 | 0.1328 % | 3,255.6 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.F | Perpetual-Discount | -2.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 22.56 Evaluated at bid price : 22.82 Bid-YTW : 5.76 % |
| MFC.PR.I | FixedReset Ins Non | -1.66 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-09-19 Maturity Price : 25.00 Evaluated at bid price : 25.47 Bid-YTW : 4.71 % |
| PWF.PR.S | Perpetual-Discount | -1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 21.45 Evaluated at bid price : 21.45 Bid-YTW : 5.61 % |
| GWO.PR.N | FixedReset Ins Non | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 19.83 Evaluated at bid price : 19.83 Bid-YTW : 5.52 % |
| SLF.PR.G | FixedReset Ins Non | 1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 21.09 Evaluated at bid price : 21.09 Bid-YTW : 5.34 % |
| ENB.PR.B | FixedReset Disc | 1.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 22.97 Evaluated at bid price : 23.56 Bid-YTW : 5.90 % |
| CU.PR.D | Perpetual-Discount | 2.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 22.25 Evaluated at bid price : 22.52 Bid-YTW : 5.50 % |
| ENB.PF.G | FixedReset Disc | 2.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 23.09 Evaluated at bid price : 24.60 Bid-YTW : 5.87 % |
| GWO.PR.Q | Insurance Straight | 2.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 22.95 Evaluated at bid price : 23.22 Bid-YTW : 5.58 % |
| GWO.PR.Y | Insurance Straight | 3.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 20.70 Evaluated at bid price : 20.70 Bid-YTW : 5.49 % |
| PWF.PR.K | Perpetual-Discount | 4.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 21.94 Evaluated at bid price : 22.17 Bid-YTW : 5.59 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BN.PF.E | FixedReset Disc | 103,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 23.02 Evaluated at bid price : 24.32 Bid-YTW : 5.71 % |
| BN.PF.M | FixedReset Prem | 80,100 | YTW SCENARIO Maturity Type : Call Maturity Date : 2031-01-01 Maturity Price : 25.00 Evaluated at bid price : 25.92 Bid-YTW : 4.80 % |
| FFH.PR.K | FixedReset Prem | 20,043 | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.25 Bid-YTW : 3.91 % |
| GWO.PF.A | Perpetual-Premium | 19,400 | YTW SCENARIO Maturity Type : Call Maturity Date : 2035-06-30 Maturity Price : 25.00 Evaluated at bid price : 25.18 Bid-YTW : 5.69 % |
| ENB.PR.H | FixedReset Disc | 17,860 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-14 Maturity Price : 23.26 Evaluated at bid price : 24.28 Bid-YTW : 5.56 % |
| GWO.PR.L | Insurance Straight | 14,700 | YTW SCENARIO Maturity Type : Call Maturity Date : 2026-08-13 Maturity Price : 25.00 Evaluated at bid price : 25.18 Bid-YTW : -0.48 % |
| There were 3 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 |
| MFC.PR.I | FixedReset Ins Non | Quote: 25.47 – 25.96 Spot Rate : 0.4900 Average : 0.3100 YTW SCENARIO |
| ENB.PF.C | FixedReset Disc | Quote: 23.60 – 24.69 Spot Rate : 1.0900 Average : 0.9127 YTW SCENARIO |
| PWF.PR.F | Perpetual-Discount | Quote: 22.82 – 23.60 Spot Rate : 0.7800 Average : 0.6144 YTW SCENARIO |
| IFC.PR.F | Insurance Straight | Quote: 24.20 – 24.72 Spot Rate : 0.5200 Average : 0.4023 YTW SCENARIO |
| BN.PR.X | FixedReset Disc | Quote: 21.20 – 22.00 Spot Rate : 0.8000 Average : 0.6846 YTW SCENARIO |
| PWF.PR.S | Perpetual-Discount | Quote: 21.45 – 21.97 Spot Rate : 0.5200 Average : 0.4086 YTW SCENARIO |