US inflation data was not encouraging:
Consumer prices rose at a 3.4% annual rate last month, the same pace as July, according to the latest Consumer Price Index from the Bureau of Labor Statistics.
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On a monthly basis, prices rose 0.4%, an acceleration from July’s 0.1% rate. Gasoline prices, up 3.9%, accounted for a third of the monthly price increase.
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But for the Fed, the most worrisome aspect of August’s inflation report is likely the evidence that inflation has spread beyond the pump. When stripping out food and energy costs, so-called core inflation rose 2.4% in the 12 months ending in August, down from 2.5% in July. On a monthly basis, core rose 0.3%.After the release of Friday’s report, traders boosted the odds of a rate hike to 90% from 70% the day before, according to CME FedWatch. Central bank officials convene on Tuesday and Wednesday next week to determine their next move on interest rates.
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Some of the largest price increases in the August CPI report stemmed from tech. Computer software and accessory prices rose 25.4% for the 12 months ended in August, the largest annual price increase recorded. Computers and smart home assistants cost 8.4% compared to a year ago.Meanwhile, smartphone prices were down 12.2% versus the prior year. Earlier this week, though, in addition to announcing its new line of iPhones, Apple said it was raising prices of older models by $100. The price increases are tied to surging costs of producing chips, a byproduct of the booming demand of AI.
There were also strong gains in prices of rental cars, vehicle maintenance, day care and preschool, nursing homes and in-home care.
| 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 | 0.4007 % | 2,790.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4007 % | 5,253.9 |
| Floater | 5.18 % | 5.24 % | 33,505 | 15.03 | 3 | 0.4007 % | 3,027.9 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0797 % | 3,623.4 |
| SplitShare | 4.66 % | 4.42 % | 56,087 | 2.55 | 4 | -0.0797 % | 4,327.1 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0797 % | 3,376.2 |
| Perpetual-Premium | 5.73 % | 5.78 % | 71,127 | 14.03 | 9 | -0.5490 % | 3,032.2 |
| Perpetual-Discount | 5.67 % | 5.77 % | 42,291 | 14.16 | 21 | -0.8197 % | 3,334.5 |
| FixedReset Disc | 5.58 % | 6.18 % | 86,788 | 13.57 | 21 | -0.0793 % | 3,414.0 |
| Insurance Straight | 5.54 % | 5.60 % | 46,586 | 14.51 | 19 | 0.1427 % | 3,248.4 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0793 % | 4,168.6 |
| FixedReset Prem | 5.92 % | 4.39 % | 81,401 | 2.05 | 27 | 0.0670 % | 2,666.5 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0793 % | 3,489.8 |
| FixedReset Ins Non | 5.18 % | 4.98 % | 51,603 | 1.90 | 14 | 0.5357 % | 3,296.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| CU.PR.J | Perpetual-Discount | -7.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 19.70 Evaluated at bid price : 19.70 Bid-YTW : 6.09 % |
| MFC.PR.M | FixedReset Ins Non | -3.95 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-12-20 Maturity Price : 25.00 Evaluated at bid price : 25.07 Bid-YTW : 5.44 % |
| ENB.PR.F | FixedReset Disc | -2.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 23.12 Evaluated at bid price : 23.51 Bid-YTW : 6.49 % |
| GWO.PR.Y | Insurance Straight | -2.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 5.64 % |
| ENB.PR.P | FixedReset Disc | -2.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 23.07 Evaluated at bid price : 24.01 Bid-YTW : 6.35 % |
| POW.PR.D | Perpetual-Discount | -2.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 21.87 Evaluated at bid price : 22.11 Bid-YTW : 5.74 % |
| BN.PF.D | Perpetual-Discount | -1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 21.10 Evaluated at bid price : 21.10 Bid-YTW : 5.93 % |
| POW.PR.H | Perpetual-Premium | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 24.54 Evaluated at bid price : 24.95 Bid-YTW : 5.85 % |
| PWF.PR.K | Perpetual-Discount | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 21.35 Evaluated at bid price : 21.62 Bid-YTW : 5.79 % |
| POW.PR.B | Perpetual-Discount | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 23.30 Evaluated at bid price : 23.58 Bid-YTW : 5.76 % |
| POW.PR.A | Perpetual-Discount | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 24.21 Evaluated at bid price : 24.50 Bid-YTW : 5.80 % |
| POW.PR.C | Perpetual-Premium | -1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 24.68 Evaluated at bid price : 25.00 Bid-YTW : 5.89 % |
| GWO.PR.H | Insurance Straight | -1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 5.73 % |
| MFC.PR.Q | FixedReset Ins Non | -1.09 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-06-19 Maturity Price : 25.00 Evaluated at bid price : 25.32 Bid-YTW : 5.14 % |
| BN.PR.K | Floater | 1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 14.89 Evaluated at bid price : 14.89 Bid-YTW : 5.33 % |
| NA.PR.K | FixedReset Prem | 1.95 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-05-01 Maturity Price : 25.00 Evaluated at bid price : 28.70 Bid-YTW : 2.20 % |
| GWO.PR.G | Insurance Straight | 2.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 22.98 Evaluated at bid price : 23.25 Bid-YTW : 5.60 % |
| PWF.PR.Z | Perpetual-Discount | 2.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 22.34 Evaluated at bid price : 22.61 Bid-YTW : 5.77 % |
| NA.PR.I | FixedReset Prem | 2.84 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-05-01 Maturity Price : 25.00 Evaluated at bid price : 26.44 Bid-YTW : 4.73 % |
| MFC.PR.L | FixedReset Ins Non | 3.24 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-06-20 Maturity Price : 25.00 Evaluated at bid price : 25.50 Bid-YTW : 4.98 % |
| ENB.PR.D | FixedReset Disc | 4.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 23.51 Evaluated at bid price : 23.93 Bid-YTW : 6.23 % |
| IFC.PR.A | FixedReset Ins Non | 4.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 23.33 Evaluated at bid price : 23.80 Bid-YTW : 5.65 % |
| SLF.PR.E | Insurance Straight | 5.93 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 21.08 Evaluated at bid price : 21.08 Bid-YTW : 5.35 % |
| MFC.PR.F | FixedReset Ins Non | 6.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 22.08 Evaluated at bid price : 22.65 Bid-YTW : 5.43 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BN.PR.T | FixedReset Disc | 103,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 23.48 Evaluated at bid price : 24.20 Bid-YTW : 6.11 % |
| IFC.PR.C | FixedReset Ins Non | 50,010 | YTW SCENARIO Maturity Type : Call Maturity Date : 2026-10-30 Maturity Price : 25.00 Evaluated at bid price : 25.18 Bid-YTW : 4.95 % |
| PWF.PR.Z | Perpetual-Discount | 25,900 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 22.34 Evaluated at bid price : 22.61 Bid-YTW : 5.77 % |
| PWF.PR.K | Perpetual-Discount | 24,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-11 Maturity Price : 21.35 Evaluated at bid price : 21.62 Bid-YTW : 5.79 % |
| BN.PR.Z | FixedReset Disc | 21,500 | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.65 Bid-YTW : 5.00 % |
| BILP.PR.A | FixedReset Prem | 17,500 | YTW SCENARIO Maturity Type : Call Maturity Date : 2031-10-01 Maturity Price : 25.00 Evaluated at bid price : 25.30 Bid-YTW : 5.44 % |
| There were 8 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 |
| CU.PR.J | Perpetual-Discount | Quote: 19.70 – 21.75 Spot Rate : 2.0500 Average : 1.4513 YTW SCENARIO |
| GWO.PR.Q | Insurance Straight | Quote: 22.75 – 24.05 Spot Rate : 1.3000 Average : 0.8907 YTW SCENARIO |
| MFC.PR.M | FixedReset Ins Non | Quote: 25.07 – 26.07 Spot Rate : 1.0000 Average : 0.6131 YTW SCENARIO |
| GWO.PR.H | Insurance Straight | Quote: 21.25 – 22.51 Spot Rate : 1.2600 Average : 0.8982 YTW SCENARIO |
| POW.PR.D | Perpetual-Discount | Quote: 22.11 – 23.26 Spot Rate : 1.1500 Average : 0.8803 YTW SCENARIO |
| POW.PR.C | Perpetual-Premium | Quote: 25.00 – 25.73 Spot Rate : 0.7300 Average : 0.4656 YTW SCENARIO |