{"id":47353,"date":"2024-09-17T21:30:06","date_gmt":"2024-09-18T02:30:06","guid":{"rendered":"https:\/\/prefblog.com\/?p=47353"},"modified":"2024-09-17T21:30:06","modified_gmt":"2024-09-18T02:30:06","slug":"september-17-2024","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=47353","title":{"rendered":"September 17, 2024"},"content":{"rendered":"

So, good news today on Canadian inflation<\/a>:<\/p>\n

The year-over-year inflation rate of 2 per cent in August is precisely in line with what the Bank of Canada wants to see. So why will no one be celebrating outside the downtown Ottawa offices of the central bank?<\/p>\n

Reason One: Food inflation is still running a bit hot. Prices at grocery stores and restaurants came in at 2.7 per cent in August.<\/p>\n

Reason Two: Shelter inflation hit 5.3 per cent last month, a reminder that mortgage interest remains a big contributor to overall increases in the cost of living. Mortgage rates have been falling steadily, though.
…<\/b>
Now for some inflation positives: In the Statistics Canada report on the job market for August, hourly wages were up 5 per cent on a year-over-year basis after a 5.2-per-cent gain in July.<\/p><\/blockquote>\n

So, the markets reacted a bit<\/a>:<\/p>\n

The Canadian dollar fell to 73.42 cents US as the 830 am ET inflation report was released, from 73.63 prior. Canada\u2019s two-year bond yield eased a little bit – by a couple basis points. That\u2019s relatively stable, and may have also been influenced by a stronger-than-expected U.S. retail sales report released at the same time.<\/p>\n

The swaps market, which captures market bets on future monetary policy moves, suggests roughly 50\/50 odds on whether it will be a 25 or 50 basis point cut by the BoC on Oct. 23, according to LSEG data.<\/p>\n

Regardless, almost 75 basis points of rate cuts are priced into the market by the end of this year. By December of next year, the overnight rate is seen by markets as reaching 2 per cent.<\/p><\/blockquote>\n

<\/a>
Swaps market pre-announcement<\/div>\n

<\/p>\n

<\/a>
Swaps market post-announcement<\/div>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.8826 %<\/td>\n2,179.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.8826 %<\/td>\n4,181.0<\/td>\n<\/tr>\n
Floater<\/td>\n9.88 %<\/td>\n9.94 %<\/td>\n81,815<\/td>\n9.65<\/td>\n2<\/td>\n0.8826 %<\/td>\n2,409.6<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.4074 %<\/td>\n3,565.0<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.67 %<\/td>\n5.19 %<\/td>\n34,846<\/td>\n1.08<\/td>\n4<\/td>\n0.4074 %<\/td>\n4,257.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.4074 %<\/td>\n3,321.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1343 %<\/td>\n2,928.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.88 %<\/td>\n6.02 %<\/td>\n56,825<\/td>\n13.83<\/td>\n31<\/td>\n-0.1343 %<\/td>\n3,193.2<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.46 %<\/td>\n6.57 %<\/td>\n116,082<\/td>\n13.01<\/td>\n58<\/td>\n-0.1895 %<\/td>\n2,673.0<\/td>\n<\/tr>\n
Insurance Straight<\/td>\n5.80 %<\/td>\n5.80 %<\/td>\n66,351<\/td>\n14.22<\/td>\n20<\/td>\n-0.7686 %<\/td>\n3,121.7<\/td>\n<\/tr>\n
FloatingReset<\/td>\n8.25 %<\/td>\n8.27 %<\/td>\n32,709<\/td>\n11.14<\/td>\n2<\/td>\n0.1035 %<\/td>\n2,774.2<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n6.43 %<\/td>\n5.51 %<\/td>\n220,901<\/td>\n13.62<\/td>\n7<\/td>\n0.2841 %<\/td>\n2,575.9<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1895 %<\/td>\n2,732.3<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.17 %<\/td>\n5.89 %<\/td>\n97,343<\/td>\n14.10<\/td>\n14<\/td>\n-0.0441 %<\/td>\n2,841.8<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BN.PR.X<\/td>\nFixedReset Disc<\/td>\n-10.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 15.21
\nEvaluated at bid price : 15.21
\nBid-YTW : 7.55 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nInsurance Straight<\/td>\n-8.88 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 20.32
\nEvaluated at bid price : 20.32
\nBid-YTW : 6.43 %<\/td>\n<\/tr>\n
MFC.PR.N<\/td>\nFixedReset Ins Non<\/td>\n-4.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 20.40
\nEvaluated at bid price : 20.40
\nBid-YTW : 6.17 %<\/td>\n<\/tr>\n
ENB.PF.E<\/td>\nFixedReset Disc<\/td>\n-2.99 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 17.17
\nEvaluated at bid price : 17.17
\nBid-YTW : 7.77 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nInsurance Straight<\/td>\n-2.88 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 20.20
\nEvaluated at bid price : 20.20
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n
CU.PR.D<\/td>\nPerpetual-Discount<\/td>\n-2.84 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 20.50
\nEvaluated at bid price : 20.50
\nBid-YTW : 6.04 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nInsurance Straight<\/td>\n-2.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 20.21
\nEvaluated at bid price : 20.21
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n
BIP.PR.E<\/td>\nFixedReset Disc<\/td>\n-1.79 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 22.43
\nEvaluated at bid price : 23.08
\nBid-YTW : 6.46 %<\/td>\n<\/tr>\n
POW.PR.G<\/td>\nPerpetual-Discount<\/td>\n-1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 22.88
\nEvaluated at bid price : 23.15
\nBid-YTW : 6.16 %<\/td>\n<\/tr>\n
BN.PR.N<\/td>\nPerpetual-Discount<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 19.28
\nEvaluated at bid price : 19.28
\nBid-YTW : 6.19 %<\/td>\n<\/tr>\n
BN.PF.C<\/td>\nPerpetual-Discount<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 6.09 %<\/td>\n<\/tr>\n
BN.PR.M<\/td>\nPerpetual-Discount<\/td>\n1.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 19.70
\nEvaluated at bid price : 19.70
\nBid-YTW : 6.06 %<\/td>\n<\/tr>\n
BN.PR.K<\/td>\nFloater<\/td>\n1.78 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 11.41
\nEvaluated at bid price : 11.41
\nBid-YTW : 9.98 %<\/td>\n<\/tr>\n
BN.PF.I<\/td>\nFixedReset Disc<\/td>\n2.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 22.50
\nEvaluated at bid price : 23.00
\nBid-YTW : 6.95 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset Ins Non<\/td>\n2.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 16.35
\nEvaluated at bid price : 16.35
\nBid-YTW : 6.07 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nInsurance Straight<\/td>\n132,600<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 20.21
\nEvaluated at bid price : 20.21
\nBid-YTW : 5.60 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nInsurance Straight<\/td>\n126,475<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 20.62
\nEvaluated at bid price : 20.62
\nBid-YTW : 5.68 %<\/td>\n<\/tr>\n
CM.PR.Q<\/td>\nFixedReset Disc<\/td>\n86,475<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 23.48
\nEvaluated at bid price : 24.06
\nBid-YTW : 5.65 %<\/td>\n<\/tr>\n
NA.PR.C<\/td>\nFixedReset Prem<\/td>\n61,300<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2027-11-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.30
\nBid-YTW : 5.48 %<\/td>\n<\/tr>\n
ENB.PR.P<\/td>\nFixedReset Disc<\/td>\n42,600<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 19.80
\nEvaluated at bid price : 19.80
\nBid-YTW : 6.97 %<\/td>\n<\/tr>\n
BIP.PR.F<\/td>\nFixedReset Disc<\/td>\n26,000<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 22.18
\nEvaluated at bid price : 22.76
\nBid-YTW : 6.47 %<\/td>\n<\/tr>\n
There were 13 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nInsurance Straight<\/td>\nQuote: 20.32 – 22.35
\nSpot Rate : 2.0300
\nAverage : 1.1552<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 20.32
\nEvaluated at bid price : 20.32
\nBid-YTW : 6.43 %<\/td>\n<\/tr>\n

BN.PR.X<\/td>\nFixedReset Disc<\/td>\nQuote: 15.21 – 17.00
\nSpot Rate : 1.7900
\nAverage : 1.1258<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 15.21
\nEvaluated at bid price : 15.21
\nBid-YTW : 7.55 %<\/td>\n<\/tr>\n

CU.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 19.55 – 20.93
\nSpot Rate : 1.3800
\nAverage : 0.7886<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 19.55
\nEvaluated at bid price : 19.55
\nBid-YTW : 5.81 %<\/td>\n<\/tr>\n

PVS.PR.I<\/td>\nSplitShare<\/td>\nQuote: 24.85 – 25.85
\nSpot Rate : 1.0000
\nAverage : 0.5669<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.85
\nBid-YTW : 5.47 %<\/td>\n<\/tr>\n

MFC.PR.N<\/td>\nFixedReset Ins Non<\/td>\nQuote: 20.40 – 21.28
\nSpot Rate : 0.8800
\nAverage : 0.5342<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 20.40
\nEvaluated at bid price : 20.40
\nBid-YTW : 6.17 %<\/td>\n<\/tr>\n

CU.PR.D<\/td>\nPerpetual-Discount<\/td>\nQuote: 20.50 – 21.50
\nSpot Rate : 1.0000
\nAverage : 0.6640<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2054-09-17
\nMaturity Price : 20.50
\nEvaluated at bid price : 20.50
\nBid-YTW : 6.04 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

So, good news today on Canadian inflation: The year-over-year inflation rate of 2 per cent in August is precisely in line with what the Bank of Canada wants to see. So why will no one …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-47353","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/47353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47353"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/47353\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}