{"id":48603,"date":"2017-07-13T23:04:00","date_gmt":"2017-07-14T03:04:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48603"},"modified":"2025-07-22T23:05:15","modified_gmt":"2025-07-23T03:05:15","slug":"july-13-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48603","title":{"rendered":"July 13, 2017"},"content":{"rendered":"

Yesterday’s BoC policy rate hike<\/a> continues to cause turmoil for Canadian bonds<\/a>:<\/p>\n

Canadian government bonds extended their slump, pushing two-year yields to the highest since 2013, the day after the Bank of Canada raised interest rates for the first time in seven years and signaled more tightening may be ahead.<\/p>\n

Yields rose across maturities. The Canadian dollar was little changed near a one-year high rallying 1.3 percent Wednesday.<\/p>\n

While the decision to boost rates was expected by a majority of economists surveyed by Bloomberg, investors were surprised by the Bank of Canada\u2019s effort to downplay weak inflation and signal that the economy\u2019s output gap will close earlier than previously forecast.
…<\/b>
There\u2019s a 74 percent probability that policy makers led by Governor Stephen Poloz will increase rates again this year, according to overnight index swaps data compiled by Bloomberg, which would reverse the two cuts the central bank carried out in early 2015 to counter the effects of falling oil prices. There\u2019s also a 26 percent chance of two additional hikes this year.<\/p>\n<\/blockquote>\n

Yields fell back a bit as the day wore on – the Canada five-year<\/a> closed at 1.53%.<\/p>\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>\n2.4868 %<\/td>\n2,395.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n2.4868 %<\/td>\n4,395.8<\/td>\n<\/tr>\n
Floater<\/td>\n3.61 %<\/td>\n3.63 %<\/td>\n96,213<\/td>\n18.24<\/td>\n3<\/td>\n2.4868 %<\/td>\n2,533.3<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1251 %<\/td>\n3,064.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.70 %<\/td>\n4.38 %<\/td>\n57,688<\/td>\n1.43<\/td>\n5<\/td>\n-0.1251 %<\/td>\n3,660.2<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1251 %<\/td>\n2,855.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.37 %<\/td>\n4.68 %<\/td>\n69,953<\/td>\n5.94<\/td>\n21<\/td>\n-0.1391 %<\/td>\n2,779.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.29 %<\/td>\n5.26 %<\/td>\n91,660<\/td>\n15.04<\/td>\n15<\/td>\n-0.6672 %<\/td>\n2,920.3<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.33 %<\/td>\n4.29 %<\/td>\n187,159<\/td>\n6.42<\/td>\n97<\/td>\n-0.0026 %<\/td>\n2,399.4<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.05 %<\/td>\n5.38 %<\/td>\n116,870<\/td>\n6.17<\/td>\n30<\/td>\n-0.3317 %<\/td>\n2,863.0<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.64 %<\/td>\n2.94 %<\/td>\n45,949<\/td>\n4.30<\/td>\n10<\/td>\n0.1448 %<\/td>\n2,626.9<\/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
MFC.PR.H<\/td>\nFixedReset<\/td>\n-1.51 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.76
\nBid-YTW : 4.82 %<\/td>\n<\/tr>\n
VNR.PR.A<\/td>\nFixedReset<\/td>\n-1.44 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 21.57
\nEvaluated at bid price : 21.91
\nBid-YTW : 4.88 %<\/td>\n<\/tr>\n
HSE.PR.G<\/td>\nFixedReset<\/td>\n-1.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 23.11
\nEvaluated at bid price : 24.30
\nBid-YTW : 5.03 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nDeemed-Retractible<\/td>\n-1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.63
\nBid-YTW : 5.51 %<\/td>\n<\/tr>\n
CU.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 23.57
\nEvaluated at bid price : 23.84
\nBid-YTW : 5.19 %<\/td>\n<\/tr>\n
BAM.PF.D<\/td>\nPerpetual-Discount<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 22.12
\nEvaluated at bid price : 22.37
\nBid-YTW : 5.51 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\n-1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.93
\nBid-YTW : 6.66 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 16.48
\nEvaluated at bid price : 16.48
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n
MFC.PR.J<\/td>\nFixedReset<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.85
\nBid-YTW : 4.86 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset<\/td>\n1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.70
\nBid-YTW : 5.96 %<\/td>\n<\/tr>\n
SLF.PR.J<\/td>\nFloatingReset<\/td>\n1.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 16.85
\nBid-YTW : 7.97 %<\/td>\n<\/tr>\n
IAG.PR.G<\/td>\nFixedReset<\/td>\n1.96 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.40
\nBid-YTW : 5.02 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n2.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 14.30
\nEvaluated at bid price : 14.30
\nBid-YTW : 3.63 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n2.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 14.26
\nEvaluated at bid price : 14.26
\nBid-YTW : 3.64 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n2.88 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 14.30
\nEvaluated at bid price : 14.30
\nBid-YTW : 3.63 %<\/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
CM.PR.R<\/td>\nFixedReset<\/td>\n150,468<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.07
\nBid-YTW : 4.48 %<\/td>\n<\/tr>\n
RY.PR.R<\/td>\nFixedReset<\/td>\n117,837<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.92
\nBid-YTW : 3.69 %<\/td>\n<\/tr>\n
TD.PF.C<\/td>\nFixedReset<\/td>\n109,792<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 21.41
\nEvaluated at bid price : 21.75
\nBid-YTW : 4.25 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n108,000<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 21.95
\nEvaluated at bid price : 22.45
\nBid-YTW : 4.31 %<\/td>\n<\/tr>\n
BMO.PR.C<\/td>\nFixedReset<\/td>\n92,900<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.65
\nBid-YTW : 4.28 %<\/td>\n<\/tr>\n
RY.PR.Q<\/td>\nFixedReset<\/td>\n64,796<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-05-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.85
\nBid-YTW : 3.66 %<\/td>\n<\/tr>\n
There were 35 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
HSE.PR.G<\/td>\nFixedReset<\/td>\nQuote: 24.30 – 24.65
\nSpot Rate : 0.3500
\nAverage : 0.2392<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 23.11
\nEvaluated at bid price : 24.30
\nBid-YTW : 5.03 %<\/td>\n<\/tr>\n

MFC.PR.H<\/td>\nFixedReset<\/td>\nQuote: 24.76 – 25.14
\nSpot Rate : 0.3800
\nAverage : 0.2701<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.76
\nBid-YTW : 4.82 %<\/td>\n<\/tr>\n

PVS.PR.B<\/td>\nSplitShare<\/td>\nQuote: 25.22 – 25.50
\nSpot Rate : 0.2800
\nAverage : 0.1707<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.22
\nBid-YTW : 4.06 %<\/td>\n<\/tr>\n

NA.PR.W<\/td>\nFixedReset<\/td>\nQuote: 21.58 – 21.91
\nSpot Rate : 0.3300
\nAverage : 0.2209<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 21.29
\nEvaluated at bid price : 21.58
\nBid-YTW : 4.30 %<\/td>\n<\/tr>\n

VNR.PR.A<\/td>\nFixedReset<\/td>\nQuote: 21.91 – 22.31
\nSpot Rate : 0.4000
\nAverage : 0.2971<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 21.57
\nEvaluated at bid price : 21.91
\nBid-YTW : 4.88 %<\/td>\n<\/tr>\n

HSE.PR.A<\/td>\nFixedReset<\/td>\nQuote: 16.48 – 16.75
\nSpot Rate : 0.2700
\nAverage : 0.1809<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-07-13
\nMaturity Price : 16.48
\nEvaluated at bid price : 16.48
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Yesterday’s BoC policy rate hike continues to cause turmoil for Canadian bonds: Canadian government bonds extended their slump, pushing two-year yields to the highest since 2013, the day after the Bank of Canada raised interest …<\/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-48603","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48603","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=48603"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48603\/revisions"}],"predecessor-version":[{"id":48604,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48603\/revisions\/48604"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}