The TXPR price index was down 52bp today. Volume was 707,980, near the median of the second-highest volume of the past 20 trading days.
CPD was down 71bp to 13.95, on volume of 136,110 (consolidated: 332,330), highest of the past 20 trading days.
ZPR was down 31bp today on volume of 139,470 (consolidated: 423,470) above the median of the past 20 trading days.
There’s some hawkish talk from Fed governors:
The U.S. central bank will likely need to raise interest rates again to curb unacceptably high inflation, two Federal Reserve policy-makers said on Thursday.
“Returning inflation to 2 per cent is a top priority, and I will support the policy path that gets us there while carefully weighing risks to the labor market along the way,” Philadelphia Fed President Anna Paulson told a conference at her regional bank.
Paulson, a voting member of the central bank’s rate-setting Federal Open Market Committee, described inflation as “stubbornly elevated” and said “if conditions evolve as I expect, some modest further tightening may be warranted.”
Speaking in London, New York Fed President John Williams also suggested tighter monetary policy is coming. Citing Fed policy maker projections released last week that penciled in a rate increase, he said “it’s likely that another rate hike may be appropriate by the end of the year. That seems to me a reasonable way of thinking about it.”
Paulson and Williams spoke just over a week after the Fed raised its benchmark interest rate by a quarter of a percentage point, to the 3.75-to-4.00-per-cent range, in an effort to curb high inflation that threatens to undermine public confidence in the central bank’s ability to reach the 2-per-cent target.
The bond market continued its weakness:
US and Iranian leaders exchanged barbs this week at the UN General Assembly. Brent crude prices rose over 3% to nearly US$107 per barrel after a Houthi missile attack on Saudi Arabia revived fears of supply disruptions.
…
The U.S. 30-year Treasury bond yield reached its highest since 2004. The yield on the benchmark U.S. 10-year Treasury climbed to 5.21% by late afternoon, up 10 basis points and its highest since early this century. The Canadian 10-year yield was up about 5 basis points to near 4%, its highest since 2023.
…
The S&P 500 declined 0.02% to end the session at 7,704.13 points. The Nasdaq edged up 0.01% to 26,939.37 points, while the Dow Jones Industrial Average declined 0.31% to 51,349.98 points.The TSX ended down 44.97 points, or 0.1%, at 35,706.46, its lowest closing level since September 16.
The Canada five-year finished the day at 3.72%.
| 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 | -0.4200 % | 2,786.9 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4200 % | 5,248.1 |
| Floater | 5.19 % | 5.29 % | 27,571 | 15.06 | 3 | -0.4200 % | 3,024.5 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0299 % | 3,629.2 |
| SplitShare | 4.65 % | 4.55 % | 51,901 | 2.51 | 4 | 0.0299 % | 4,334.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0299 % | 3,381.6 |
| Perpetual-Premium | 5.77 % | 5.79 % | 65,557 | 14.20 | 9 | -0.6953 % | 3,007.4 |
| Perpetual-Discount | 5.77 % | 5.84 % | 41,217 | 14.09 | 21 | -0.7809 % | 3,274.5 |
| FixedReset Disc | 5.63 % | 6.21 % | 82,769 | 13.54 | 21 | -0.1240 % | 3,380.5 |
| Insurance Straight | 5.68 % | 5.77 % | 54,983 | 14.27 | 19 | -0.5008 % | 3,166.8 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1240 % | 4,127.6 |
| FixedReset Prem | 5.97 % | 4.81 % | 77,959 | 2.01 | 27 | -0.1807 % | 2,646.0 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1240 % | 3,455.6 |
| FixedReset Ins Non | 5.24 % | 5.40 % | 49,615 | 2.52 | 14 | 0.8491 % | 3,260.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BN.PR.Z | FixedReset Disc | -7.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 23.02 Evaluated at bid price : 23.50 Bid-YTW : 6.91 % |
| MFC.PR.B | Insurance Straight | -4.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 20.74 Evaluated at bid price : 20.74 Bid-YTW : 5.65 % |
| FTS.PR.J | Perpetual-Discount | -2.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 20.80 Evaluated at bid price : 20.80 Bid-YTW : 5.78 % |
| GWO.PR.Y | Insurance Straight | -2.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 19.51 Evaluated at bid price : 19.51 Bid-YTW : 5.80 % |
| GWO.PR.N | FixedReset Ins Non | -2.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 5.68 % |
| IFC.PR.F | Insurance Straight | -1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 22.68 Evaluated at bid price : 22.97 Bid-YTW : 5.79 % |
| GWO.PR.L | Insurance Straight | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 23.95 Evaluated at bid price : 24.20 Bid-YTW : 5.86 % |
| PWF.PR.F | Perpetual-Discount | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 22.49 Evaluated at bid price : 22.75 Bid-YTW : 5.86 % |
| SLF.PR.D | Insurance Straight | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 5.43 % |
| ENB.PF.G | FixedReset Disc | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 22.91 Evaluated at bid price : 24.10 Bid-YTW : 6.32 % |
| BN.PF.E | FixedReset Disc | 1.23 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2030-04-01 Maturity Price : 25.00 Evaluated at bid price : 24.60 Bid-YTW : 5.70 % |
| CU.PR.G | Perpetual-Discount | 1.59 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 19.82 Evaluated at bid price : 19.82 Bid-YTW : 5.74 % |
| ENB.PR.Y | FixedReset Disc | 2.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 22.56 Evaluated at bid price : 23.20 Bid-YTW : 6.30 % |
| CCS.PR.C | Insurance Straight | 4.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 22.24 Evaluated at bid price : 22.51 Bid-YTW : 5.57 % |
| IFC.PR.G | FixedReset Ins Non | 20.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 23.64 Evaluated at bid price : 24.00 Bid-YTW : 6.37 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CU.PR.C | FixedReset Disc | 101,361 | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.13 Bid-YTW : 4.96 % |
| ENB.PF.E | FixedReset Disc | 56,281 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 22.83 Evaluated at bid price : 23.88 Bid-YTW : 6.32 % |
| ENB.PR.T | FixedReset Disc | 33,598 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 23.28 Evaluated at bid price : 24.60 Bid-YTW : 6.21 % |
| BILP.PR.A | FixedReset Prem | 20,050 | YTW SCENARIO Maturity Type : Call Maturity Date : 2031-10-01 Maturity Price : 25.00 Evaluated at bid price : 24.98 Bid-YTW : 5.79 % |
| PWF.PR.G | Perpetual-Premium | 18,720 | YTW SCENARIO Maturity Type : Call Maturity Date : 2026-10-24 Maturity Price : 25.00 Evaluated at bid price : 25.30 Bid-YTW : 2.09 % |
| GWO.PR.Q | Insurance Straight | 15,961 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-24 Maturity Price : 22.04 Evaluated at bid price : 22.27 Bid-YTW : 5.80 % |
| 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 |
| BN.PR.Z | FixedReset Disc | Quote: 23.50 – 25.38 Spot Rate : 1.8800 Average : 1.0872 YTW SCENARIO |
| MFC.PR.B | Insurance Straight | Quote: 20.74 – 21.74 Spot Rate : 1.0000 Average : 0.5946 YTW SCENARIO |
| PWF.PR.P | FixedReset Disc | Quote: 22.20 – 23.20 Spot Rate : 1.0000 Average : 0.6701 YTW SCENARIO |
| ENB.PR.T | FixedReset Disc | Quote: 24.60 – 25.39 Spot Rate : 0.7900 Average : 0.4616 YTW SCENARIO |
| FTS.PR.J | Perpetual-Discount | Quote: 20.80 – 21.63 Spot Rate : 0.8300 Average : 0.5329 YTW SCENARIO |
| IFC.PR.F | Insurance Straight | Quote: 22.97 – 24.40 Spot Rate : 1.4300 Average : 1.1753 YTW SCENARIO |