{"id":48974,"date":"2017-12-06T21:00:00","date_gmt":"2017-12-07T02:00:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48974"},"modified":"2025-07-31T21:01:53","modified_gmt":"2025-08-01T01:01:53","slug":"december-6-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48974","title":{"rendered":"December 6, 2017"},"content":{"rendered":"

The Bank of Canada stood pat<\/a> today:<\/p>\n

The Bank of Canada today maintained its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1\/4 per cent and the deposit rate is 3\/4 per cent.<\/p>\n

The global economy is evolving largely as expected in the Bank\u2019s October Monetary Policy Report (MPR). In the United States, growth in the third quarter was stronger than forecast but is still expected to moderate in the months ahead. Growth has firmed in other advanced economies. Meanwhile, oil prices have moved higher and financial conditions have eased. The global outlook remains subject to considerable uncertainty, notably about geopolitical developments and trade policies.<\/p>\n

Recent Canadian data are in line with October\u2019s outlook, which was for growth to moderate while remaining above potential in the second half of 2017. Employment growth has been very strong and wages have shown some improvement, supporting robust consumer spending in the third quarter. Business investment continued to contribute to growth after a strong first half, and public infrastructure spending is becoming more evident in the data. Following exceptionally strong growth earlier in 2017, exports declined by more than was expected in the third quarter. However, the latest trade data support the MPR projection that export growth will resume as foreign demand strengthens. Housing has continued to moderate, as expected.<\/p>\n

Inflation has been slightly higher than anticipated and will continue to be boosted in the short term by temporary factors, particularly gasoline prices. Measures of core inflation have edged up in recent months, reflecting the continued absorption of economic slack. Revisions to past quarterly national accounts have resulted in a higher level of GDP. However, this is unlikely to have significant implications for the output gap because the revisions also imply a higher level of potential output. Meanwhile, despite rising employment and participation rates, other indicators point to ongoing\u00ad \u2013 albeit diminishing \u2013 slack in the labour market.<\/p>\n

Based on the outlook for inflation and the evolution of the risks and uncertainties identified in October\u2019s MPR, Governing Council judges that the current stance of monetary policy remains appropriate. While higher interest rates will likely be required over time, Governing Council will continue to be cautious, guided by incoming data in assessing the economy\u2019s sensitivity to interest rates, the evolution of economic capacity, and the dynamics of both wage growth and inflation.<\/p>\n<\/blockquote>\n

It seems that some players were expecting a hike<\/a>:<\/p>\n

The Canadian dollar reversed gains after the statement, weakening 0.7 percent to C$1.2777 per U.S. dollar at 11:10 a.m. in Toronto. Yields on Canadian government bonds fell across all maturities, with the rate on the country\u2019s two-year bonds dropping four basis points to 1.5 percent.<\/p>\n

Swaps trading suggests investors pushed back their expectations for the next rate increase, with the likelihood of a hike in the first quarter now at 60 percent from as high as 75 percent earlier this week.<\/p>\n<\/blockquote>\n

Meanwhile, in the Canadian preferred share market:<\/p>\n

\"nuclear-war-explosion-in-city-razvan-ionut-dragomirescu\"<\/a>
Click for Big<\/i><\/div>\n

PerpetualDiscounts now yield 5.30%, equivalent to 6.89% interest at the standard equivalency factor of 1.3x. Long corporates<\/a> now yield about 3.75%, so the pre-tax interest-equivalent spread is now 315bp, a significant widening from the 305bp reported November 6<\/a>.<\/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>\n-0.3733 %<\/td>\n2,503.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.3733 %<\/td>\n4,594.1<\/td>\n<\/tr>\n
Floater<\/td>\n3.65 %<\/td>\n3.84 %<\/td>\n33,207<\/td>\n17.68<\/td>\n4<\/td>\n-0.3733 %<\/td>\n2,647.6<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1247 %<\/td>\n3,117.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.73 %<\/td>\n3.72 %<\/td>\n54,730<\/td>\n1.07<\/td>\n6<\/td>\n-0.1247 %<\/td>\n3,723.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1247 %<\/td>\n2,904.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.37 %<\/td>\n4.73 %<\/td>\n55,435<\/td>\n0.24<\/td>\n20<\/td>\n-0.2160 %<\/td>\n2,832.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.24 %<\/td>\n5.30 %<\/td>\n73,312<\/td>\n14.91<\/td>\n14<\/td>\n-0.3885 %<\/td>\n2,989.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.30 %<\/td>\n4.44 %<\/td>\n143,914<\/td>\n6.13<\/td>\n98<\/td>\n-0.3555 %<\/td>\n2,461.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.07 %<\/td>\n5.32 %<\/td>\n89,841<\/td>\n5.95<\/td>\n30<\/td>\n-0.3673 %<\/td>\n2,932.8<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.74 %<\/td>\n2.81 %<\/td>\n40,241<\/td>\n3.92<\/td>\n8<\/td>\n0.0925 %<\/td>\n2,681.7<\/td>\n<\/tr>\n<\/table>\n\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
IFC.PR.C<\/td>\nFixedReset<\/td>\n-2.46 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.60
\nBid-YTW : 5.57 %<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset<\/td>\n-1.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.35
\nBid-YTW : 7.82 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nDeemed-Retractible<\/td>\n-1.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.78
\nBid-YTW : 6.82 %<\/td>\n<\/tr>\n
MFC.PR.M<\/td>\nFixedReset<\/td>\n-1.42 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.86
\nBid-YTW : 5.49 %<\/td>\n<\/tr>\n
BAM.PF.E<\/td>\nFixedReset<\/td>\n-1.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 22.55
\nEvaluated at bid price : 23.03
\nBid-YTW : 4.70 %<\/td>\n<\/tr>\n
CM.PR.O<\/td>\nFixedReset<\/td>\n-1.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 22.68
\nEvaluated at bid price : 23.07
\nBid-YTW : 4.38 %<\/td>\n<\/tr>\n
MFC.PR.N<\/td>\nFixedReset<\/td>\n-1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.52
\nBid-YTW : 5.66 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n-1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.61
\nBid-YTW : 6.26 %<\/td>\n<\/tr>\n
MFC.PR.L<\/td>\nFixedReset<\/td>\n-1.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.05
\nBid-YTW : 5.94 %<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetual-Discount<\/td>\n-1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 23.92
\nEvaluated at bid price : 24.16
\nBid-YTW : 5.33 %<\/td>\n<\/tr>\n
CM.PR.P<\/td>\nFixedReset<\/td>\n-1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 22.44
\nEvaluated at bid price : 22.73
\nBid-YTW : 4.35 %<\/td>\n<\/tr>\n
CM.PR.Q<\/td>\nFixedReset<\/td>\n-1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 22.99
\nEvaluated at bid price : 23.92
\nBid-YTW : 4.55 %<\/td>\n<\/tr>\n
BMO.PR.S<\/td>\nFixedReset<\/td>\n-1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 22.82
\nEvaluated at bid price : 23.25
\nBid-YTW : 4.35 %<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset<\/td>\n-1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 22.93
\nEvaluated at bid price : 23.40
\nBid-YTW : 4.68 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 14.61
\nEvaluated at bid price : 14.61
\nBid-YTW : 3.88 %<\/td>\n<\/tr>\n
MFC.PR.R<\/td>\nFixedReset<\/td>\n3.83 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.78
\nBid-YTW : 4.03 %<\/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
HSB.PR.C<\/td>\nDeemed-Retractible<\/td>\n403,440<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-01-05
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.28
\nBid-YTW : 2.90 %<\/td>\n<\/tr>\n
SLF.PR.J<\/td>\nFloatingReset<\/td>\n238,765<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 17.60
\nBid-YTW : 7.74 %<\/td>\n<\/tr>\n
BNS.PR.R<\/td>\nFixedReset<\/td>\n100,083<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.13
\nBid-YTW : 3.64 %<\/td>\n<\/tr>\n
TD.PR.Y<\/td>\nFixedReset<\/td>\n80,100<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.93
\nBid-YTW : 3.61 %<\/td>\n<\/tr>\n
BNS.PR.G<\/td>\nFixedReset<\/td>\n60,030<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-07-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.83
\nBid-YTW : 3.54 %<\/td>\n<\/tr>\n
RY.PR.Z<\/td>\nFixedReset<\/td>\n48,500<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 22.49
\nEvaluated at bid price : 22.90
\nBid-YTW : 4.30 %<\/td>\n<\/tr>\n
There were 34 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
PWF.PR.A<\/td>\nFloater<\/td>\nQuote: 17.42 – 18.25
\nSpot Rate : 0.8300
\nAverage : 0.5575<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 17.42
\nEvaluated at bid price : 17.42
\nBid-YTW : 3.23 %<\/td>\n<\/tr>\n

GWO.PR.Q<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.40 – 24.74
\nSpot Rate : 0.3400
\nAverage : 0.2128<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.40
\nBid-YTW : 5.54 %<\/td>\n<\/tr>\n

BMO.PR.Y<\/td>\nFixedReset<\/td>\nQuote: 24.22 – 24.64
\nSpot Rate : 0.4200
\nAverage : 0.3165<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 23.12
\nEvaluated at bid price : 24.22
\nBid-YTW : 4.44 %<\/td>\n<\/tr>\n

PWF.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.65 – 25.00
\nSpot Rate : 0.3500
\nAverage : 0.2534<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 24.34
\nEvaluated at bid price : 24.65
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n

VNR.PR.A<\/td>\nFixedReset<\/td>\nQuote: 24.27 – 24.64
\nSpot Rate : 0.3700
\nAverage : 0.2780<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 22.90
\nEvaluated at bid price : 24.27
\nBid-YTW : 4.67 %<\/td>\n<\/tr>\n

PWF.PR.T<\/td>\nFixedReset<\/td>\nQuote: 24.00 – 24.34
\nSpot Rate : 0.3400
\nAverage : 0.2496<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-12-06
\nMaturity Price : 23.50
\nEvaluated at bid price : 24.00
\nBid-YTW : 4.28 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Bank of Canada stood pat today: The Bank of Canada today maintained its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1\/4 per cent and the deposit …<\/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-48974","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48974","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=48974"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48974\/revisions"}],"predecessor-version":[{"id":48975,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48974\/revisions\/48975"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}