The cry goes up from the prediction markets and gambling hells … “Buy the dips!”:
A wave of investor buying reversed an early selloff in US Treasuries on Thursday, providing relief to bondholders after long-term yields surged to their highest level in 24 years following the latest hot economic data.
The reversal opened October on an optimistic note following the largest quarterly rise in 10-year yields since 1994, a year known on Wall Street as the great bond massacre. Yields on 10- and 30-year Treasuries hit their highest level since the spring of 2002 at midmorning on Thursday after the Institute for Supply Management said US manufacturing activity was little changed in September, with prices for inputs surging amid strong demand, pointing to sustained inflation pressures.
The early selloff came against a deteriorating backdrop for inflation, with benchmark Brent oil prices rallying after China suspended exports of oil products. Earlier data showed that new applications for US unemployment benefits fell last week and layoffs decreased in September, suggesting that labor-market stability persisted even as employers remained cautious about boosting hiring.
But the momentum shifted toward buying bonds shortly after 10 a.m. EDT (1400 GMT), with traders and analysts citing a widespread sense that the sharp rises in yields over the past six weeks have vastly improved the risk/reward profile on US Treasury debt. On Thursday afternoon, benchmark yields were on track for their biggest drop in two weeks after dovish comments from Federal Reserve officials.
…
Some of the strongest buying occurred in 2-year Treasuries, with yields marking their biggest declines in a single session since August 2025. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, was last down 8.94 basis points at 4.798%.
…
The yield on benchmark U.S. 10-year notes fell 5.02 basis points to 5.243% after earlier trading at 5.3445%, their highest level since April 2002.The 30-year bond yield fell 3.21 basis points to 5.6069% after earlier reaching 5.6935%.
| 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 | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.7017 % | 2,752.2 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.7017 % | 5,182.9 |
| Floater | 5.25 % | 5.35 % | 30,174 | 14.95 | 3 | 0.7017 % | 2,986.9 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1598 % | 3,612.2 |
| SplitShare | 4.68 % | 4.91 % | 47,963 | 1.36 | 4 | -0.1598 % | 4,313.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1598 % | 3,365.8 |
| Perpetual-Premium | 5.90 % | 5.97 % | 73,648 | 13.93 | 9 | 1.2295 % | 2,945.0 |
| Perpetual-Discount | 5.95 % | 6.02 % | 44,977 | 13.80 | 21 | 1.5714 % | 3,179.6 |
| FixedReset Disc | 5.71 % | 6.41 % | 78,997 | 13.19 | 21 | 0.7073 % | 3,335.2 |
| Insurance Straight | 5.85 % | 5.89 % | 65,357 | 14.06 | 19 | -0.0419 % | 3,077.5 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.7073 % | 4,072.3 |
| FixedReset Prem | 5.99 % | 4.67 % | 77,404 | 1.99 | 27 | 0.1951 % | 2,634.6 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.7073 % | 3,409.3 |
| FixedReset Ins Non | 5.67 % | 5.90 % | 48,585 | 13.60 | 13 | -0.2594 % | 3,210.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IFC.PR.G | FixedReset Ins Non | -5.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 23.66 Evaluated at bid price : 24.02 Bid-YTW : 6.52 % |
| GWO.PR.M | Insurance Straight | -2.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 23.97 Evaluated at bid price : 24.22 Bid-YTW : 6.02 % |
| NA.PR.K | FixedReset Prem | -2.11 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-05-01 Maturity Price : 25.00 Evaluated at bid price : 27.80 Bid-YTW : 3.63 % |
| MFC.PR.K | FixedReset Ins Non | -2.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 23.48 Evaluated at bid price : 24.70 Bid-YTW : 6.06 % |
| MFC.PR.Q | FixedReset Ins Non | -1.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 23.50 Evaluated at bid price : 24.60 Bid-YTW : 6.34 % |
| BIP.PR.F | FixedReset Prem | -1.57 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-01-01 Maturity Price : 25.00 Evaluated at bid price : 25.10 Bid-YTW : 6.30 % |
| GWO.PR.I | Insurance Straight | -1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 19.01 Evaluated at bid price : 19.01 Bid-YTW : 5.96 % |
| SLF.PR.D | Insurance Straight | -1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 19.73 Evaluated at bid price : 19.73 Bid-YTW : 5.68 % |
| PWF.PR.G | Perpetual-Premium | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 24.52 Evaluated at bid price : 24.77 Bid-YTW : 6.06 % |
| GWO.PR.Z | Insurance Straight | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 24.02 Evaluated at bid price : 24.40 Bid-YTW : 5.86 % |
| BN.PR.T | FixedReset Disc | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 22.44 Evaluated at bid price : 23.34 Bid-YTW : 6.37 % |
| POW.PR.A | Perpetual-Discount | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 22.99 Evaluated at bid price : 23.26 Bid-YTW : 6.03 % |
| BN.PF.D | Perpetual-Discount | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 19.81 Evaluated at bid price : 19.81 Bid-YTW : 6.23 % |
| ENB.PR.H | FixedReset Disc | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 23.16 Evaluated at bid price : 23.51 Bid-YTW : 6.31 % |
| MFC.PR.M | FixedReset Ins Non | 1.12 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-12-20 Maturity Price : 25.00 Evaluated at bid price : 25.23 Bid-YTW : 5.32 % |
| CU.PR.K | Perpetual-Premium | 1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 23.47 Evaluated at bid price : 23.80 Bid-YTW : 5.94 % |
| PWF.PR.S | Perpetual-Discount | 1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 20.22 Evaluated at bid price : 20.22 Bid-YTW : 6.05 % |
| POW.PR.B | Perpetual-Discount | 1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 22.33 Evaluated at bid price : 22.60 Bid-YTW : 5.93 % |
| PWF.PR.Z | Perpetual-Discount | 1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 6.11 % |
| BN.PR.N | Perpetual-Discount | 1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 19.27 Evaluated at bid price : 19.27 Bid-YTW : 6.21 % |
| POW.PR.G | Perpetual-Discount | 1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 23.20 Evaluated at bid price : 23.50 Bid-YTW : 5.97 % |
| POW.PR.D | Perpetual-Discount | 1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 21.18 Evaluated at bid price : 21.18 Bid-YTW : 5.93 % |
| ENB.PR.A | Perpetual-Discount | 1.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 23.71 Evaluated at bid price : 23.98 Bid-YTW : 5.79 % |
| PWF.PR.R | Perpetual-Discount | 1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 22.88 Evaluated at bid price : 23.15 Bid-YTW : 6.04 % |
| PWF.PR.F | Perpetual-Discount | 1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 21.95 Evaluated at bid price : 22.19 Bid-YTW : 6.02 % |
| BN.PF.C | Perpetual-Discount | 1.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 19.77 Evaluated at bid price : 19.77 Bid-YTW : 6.18 % |
| ENB.PR.F | FixedReset Disc | 1.95 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 23.10 Evaluated at bid price : 23.50 Bid-YTW : 6.60 % |
| PWF.PR.L | Perpetual-Discount | 1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 21.51 Evaluated at bid price : 21.51 Bid-YTW : 6.04 % |
| ENB.PR.B | FixedReset Disc | 2.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 22.83 Evaluated at bid price : 23.50 Bid-YTW : 6.51 % |
| BN.PR.B | Floater | 2.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 14.44 Evaluated at bid price : 14.44 Bid-YTW : 5.43 % |
| PWF.PR.K | Perpetual-Discount | 2.95 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 20.95 Evaluated at bid price : 20.95 Bid-YTW : 6.02 % |
| MFC.PR.I | FixedReset Ins Non | 2.98 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-09-19 Maturity Price : 25.00 Evaluated at bid price : 25.25 Bid-YTW : 5.16 % |
| MFC.PR.B | Insurance Straight | 3.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 20.51 Evaluated at bid price : 20.51 Bid-YTW : 5.72 % |
| POW.PR.H | Perpetual-Premium | 3.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 23.77 Evaluated at bid price : 24.13 Bid-YTW : 5.97 % |
| ENB.PR.D | FixedReset Disc | 3.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 22.84 Evaluated at bid price : 23.28 Bid-YTW : 6.52 % |
| PWF.PR.H | Perpetual-Premium | 3.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 23.91 Evaluated at bid price : 24.15 Bid-YTW : 6.06 % |
| BN.PF.G | FixedReset Prem | 4.07 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2030-07-01 Maturity Price : 25.00 Evaluated at bid price : 25.03 Bid-YTW : 5.67 % |
| BN.PR.M | Perpetual-Discount | 14.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 19.40 Evaluated at bid price : 19.40 Bid-YTW : 6.17 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| FFH.PR.K | FixedReset Prem | 130,200 | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 3.88 % |
| BN.PR.B | Floater | 30,781 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 14.44 Evaluated at bid price : 14.44 Bid-YTW : 5.43 % |
| BILP.PR.A | FixedReset Prem | 27,900 | YTW SCENARIO Maturity Type : Call Maturity Date : 2031-10-01 Maturity Price : 25.00 Evaluated at bid price : 25.10 Bid-YTW : 5.70 % |
| PWF.PR.G | Perpetual-Premium | 24,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 24.52 Evaluated at bid price : 24.77 Bid-YTW : 6.06 % |
| GWO.PR.R | Insurance Straight | 15,900 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 20.21 Evaluated at bid price : 20.21 Bid-YTW : 5.98 % |
| SLF.PR.E | Insurance Straight | 15,550 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-01 Maturity Price : 19.93 Evaluated at bid price : 19.93 Bid-YTW : 5.69 % |
| There were 7 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 |
| PWF.PF.A | Perpetual-Discount | Quote: 19.30 – 20.65 Spot Rate : 1.3500 Average : 0.8690 YTW SCENARIO |
| IFC.PR.E | Insurance Straight | Quote: 22.55 – 23.75 Spot Rate : 1.2000 Average : 0.8248 YTW SCENARIO |
| MFC.PR.K | FixedReset Ins Non | Quote: 24.70 – 25.70 Spot Rate : 1.0000 Average : 0.6625 YTW SCENARIO |
| IFC.PR.G | FixedReset Ins Non | Quote: 24.02 – 25.65 Spot Rate : 1.6300 Average : 1.2931 YTW SCENARIO |
| ENB.PR.P | FixedReset Disc | Quote: 23.85 – 24.87 Spot Rate : 1.0200 Average : 0.6978 YTW SCENARIO |
| MFC.PR.Q | FixedReset Ins Non | Quote: 24.60 – 25.60 Spot Rate : 1.0000 Average : 0.7044 YTW SCENARIO |