Government of Canada two-year bonds have "richened" on a cross-border basis to the tune of 14 bps versus United States Treasuries since the start of this month, with the bulk of that. outperformance stemming from Tuesday's roughly 10 bps move, said National Bank of Canada. Early Wednesday, the GoC-UST two-year differential is opening slightly richer at -109 bps, added the bank.
Canadian headline consumer price index rose to 2.8% year over year in April from 2.4% in March, largely reflecting surging energy prices, said Nomura after Tuesday's CPI. Core inflation continued to cool with the Bank of Canada's preferred core measures averaging 2.1% year over year, the lowest since January 2021, noted Nomura.
The US dollar rose against its major trading partners early Wednesday, except for a decline versus the yen, as markets look ahead to the minutes of the April 28-29 Federal Open Market Committee meeting to be released at 2:00 pm ET. Before that, Federal Reserve Governor Michael Barr is due to speak at 9:15 am ET, followed by weekly petroleum stocks data at 10:30 am ET.
Commerzbank in its "European Sunrise" note of Wednesday highlighted: Markets: United States Treasury yields remain close to the highs in the late New York session, front-end slightly better supported in Asia. Fed: Federal Reserve Bank of Philadelphia President Anna Paulson says rate cuts require progress on inflation.
Sustained upward pressure on oil prices appears to be the sole focus of bond markets, said Bank of Montreal. Even the friendliest reading on core inflation in about five years couldn't halt the rout in Government of Canada bonds, noted the bank. Meanwhile, 30-year United States Treasury yields have rocketed to nearly 5.2%, the highest since June 2007, pointed out the BMO.
Akamai Technologies (AKAM) priced a private offering of $1.5 billion of 0% convertible senior unsecured notes due May 15, 2030, and $1.5 billion of 0% convertible senior unsecured notes due May 15, 2032, the company said late Tuesday. The sale was upsized from a previous planned $1.3 billion in each case.
Elbit Systems' (ESLT) long-term rating has been upgraded by S&P Global Ratings Maalot to "ilAAA," with a stable outlook, the company said Wednesday. The ratings agency cited the company's improving financial ratios, operating performance, and robust backlog amid increasing defense budgets, Elbit Systems (ESLT) said. Shares of Elbit Systems (ESLT) were nearly 2% higher premarket Wednesday.
Redwood Trust (RWT) priced a public offering of $125 million of 9.75% senior unsecured notes due June 1, 2031, the company said late Tuesday. Underwriters have a 30-day overallotment option to purchase up to an additional $18.8 million of notes. The company expects the offering to close May 27 and plans to use the net proceeds for general corporate purposes.
Bombardier after trade Tuesday said it completed the redemption of all US$750 million of its 7.50% senior notes due in 2029. The repayment was funded through proceeds from a new debt offering along with US$250 million in cash from the company's balance sheet, it added.
US equity indexes slid as the 30-year Treasury yield rose to a two-decade high amid bets favoring higher interest rates and President Donald Trump's threat to Iran that strikes will resume if talks with the Gulf nations fail to produce a framework for a peace deal.
The Nasdaq Composite and the S&P 500 fell for a third consecutive session on Tuesday and Treasury yields jumped, while traders assessed US President Donald Trump's latest remarks on the conflict with Iran.
American Tower (AMT) said late Tuesday it priced a public offering of 750 million euros in senior unsecured notes due 2033 at 99.663% of face value with a 4% annual interest rate.
Veon (VEON) said late Tuesday its Veon Midco unit has priced its offering of $700 million of 6.95% senior unsecured notes due 2031 and another $700 million of 7.45% of notes due 2033 at par of their principal amounts. The offering reflects its balance sheet optimization, it said. Net proceeds will be used to refinance its debt, including the purchase of its 3.375% senior notes due 2027, the company said.
The Toronto Stock Exchange fell again Tuesday, following Friday's tumble ahead of the holiday weekend in Canada, but this time it was lower on a more local issue as market watchers are divided over whether to prepare for the Bank of Canada turning more dovish or hawkish on interest rates.
US equity indexes end lower on Tuesday after the 30-year treasury yield hit a near two-decade high, the chances of an interest rate hike increased and President Donald Trump threatened to resume strikes if Iran fails to reach a peace deal.
Financial stocks were lower in late Tuesday afternoon trading, with the NYSE Financial Index decreasing 0.5% and the State Street Financial Select Sector SPDR ETF shedding 1.1%. The Philadelphia Housing Index was falling 1.9%, and the State Street Real Estate Select Sector SPDR ETF was up 0.2%. Bitcoin was decreasing 0.2% to $76,806, and the yield for 10-year US Treasuries rose 4.4 basis points...
US equity indexes fell as Treasury yields surged and bets favoring higher interest rates jumped amid President Donald Trump's threat to Iran that strikes will resume if Tehran fails to agree on an acceptable deal in talks with Gulf nations.
Financial stocks declined in late Tuesday afternoon trading, with the NYSE Financial Index decreasing 0.5% and the State Street Financial Select Sector SPDR ETF shedding 1.1%. The Philadelphia Housing Index was falling 1.9%, and the State Street Real Estate Select Sector SPDR ETF was up 0.2%. Bitcoin was decreasing 0.2% to $76,806, and the yield for 10-year US Treasuries rose 4.4 basis points t...
US benchmark equity indexes were lower and Treasury yields jumped after midday Tuesday as traders continued to monitor developments in the Middle East. The Nasdaq Composite was down 0.4% at 25,989.8 intraday, while the S&P 500 fell 0.2% to 7,385.
US equity indexes fell after the 30-year Treasury yield hit its highest in just under two decades, while bets favoring interest rate increases jumped amid President Donald Trump's threat to resume strikes if Iran fails to reach a peace deal.
Financial stocks declined in Tuesday afternoon trading, with the NYSE Financial Index decreasing 0.3% and the State Street Financial Select Sector SPDR ETF off 0.5%. The Philadelphia Housing Index was falling 1.3%, and the State Street Real Estate Select Sector SPDR ETF was up 0.4%. Bitcoin was fractionally lower at $76,933, and the yield for 10-year US Treasuries was up 3 basis points at 4.65%...
Broad Market Indicators. Broad-market exchange-traded funds IWM and IVV fell. US equity indexes fell in midday trading on Tuesday after the 30-year Treasury yield traded at its highest level in just under two decades and as the Iran standoff continued. Energy. IShares US Energy ETF and the State Street Energy Select Sector SPDR each rose about 0.8%. Technology.
Financial stocks declined in Tuesday afternoon trading, with the NYSE Financial Index decreasing 0.3% and the State Street Financial Select Sector SPDR ETF off 0.5%. The Philadelphia Housing Index was falling 1.3%, and the State Street Real Estate Select Sector SPDR ETF was up 0.4%. Bitcoin was fractionally lower at $76,933, and the yield for 10-year US Treasuries was rising 3.2 basis points to...
US equity indexes fell in midday trading on Tuesday after the 30-year Treasury yield traded at its highest level in just under two decades and as the Iran standoff continued.
Having had nightmares about another round of persistently high inflation, Canadian monetary policymakers can now rest easier after Tuesday's consumer price index for April, said Desjardins. Tuesday's CPI data suggest that underlying price pressures remain extremely muted, noted the bank.
All three major US stock indexes were down in late-morning trading Tuesday, as the 30-year Treasury yield hit its highest level in almost 19 years. The North Atlantic Treaty Organization is considering helping ships pass through the Strait of Hormuz if it doesn't get unblocked by early July, Bloomberg reported Tuesday, citing a senior official in the military alliance.
Canadian consumer prices rose 0.4% month over month non-seasonally adjusted in April, or 0.3% in seasonally adjusted terms, lifting the headline inflation rate to 2.8% year over year from 2.4% the prior month, said Bank of Montreal. The bump was driven by an 8.9% jump in gasoline prices, which the bank saw coming a mile away.
Canadian inflation accelerated sharply in April, though less than expected, driven primarily by higher gasoline prices and fading favorable energy base effects, said RBC after Tuesday's consumer price index. Headline CPI rose 0.3% month-over-month seasonally adjusted in April, lifting the annual rate to 2.8% from 2.4% in March, below market expectations, according to the bank.
The headline consumer price index accelerated in April as gasoline prices surged, but the jump wasn't as high as expected and core measures of inflation remained muted, supporting the current wait-and-see stance of the Bank of Canada, said CIBC. Earlier Tuesday, Canada released April's CPI.
Headline prices rose just 0.4%, well below the 0.7% consensus forecast. After declining 0.1% in March, prices excluding food and energy were unchanged in April. The breadth of Canadian outsized price increases narrowed in April, with the share of consumer price index components rising faster than 3% year over year falling to 38% from 41%, said Desjardis after Tuesday's CPI.
As expected, higher oil prices lifted Canadian inflation in April, but TD Economics isn't yet seeing much of a knock-on effect to non-energy-related goods or services, noting core inflation pressures were actually softer than expected in April. There is little argument yet for Bank of Canada rate hikes here, and market pricing for rate hikes this year has come down a bit early Tuesday, TD noted.
Canadian headline consumer price index accelerated in April as gasoline prices surged, but the jump wasn't as high as expected and core measures of inflation remained muted, supporting the current wait-and-see stance of the Bank of Canada, said CIBC. The 0.4% month-over-month non-seasonally adjusted increase was three ticks below the consensus forecast, noted the bank after Tuesday's data.
Multiple municipal bond offerings this week have a high exposure to climate risk, specifically high Flood and Wildfire Scores, according to ICE Climate Data. A $9 million offering from Burlington, N.J., records a Flood Risk Score of 5.0 out of 5.0, ICE reports.
The Canadian consumer price index increased 2.8% year over year in April on rising energy prices, up from an increase of 2.4% in March, said the country's statistical agency on Tuesday. But April's CPI was lower than a 3.1% year over year consensus figure provided by MUFG.
Canadian housing starts climbed by 16.5% month over month in April to a four-month high of 279,300 annualized units and beat expectations of a 245,000 print following an upwardly revised 239,700 reading in March from 235,900 initially, said Rosenberg Research.
The Canadian consumer price index for April is released at 8:30 a.m. ET on Tuesday, said Scotiabank. The bank has estimated a 1% month-over-month non-seasonally adjusted rise, with consensus at 0.7% and with a range from 0.6-1.0%, but the consensus is somewhat "thin." There is a reasonable range from 0.5-1.0%, it added.
Canada's consumer price index on Tuesday is a potential "marker mover" for Canadian government bonds and USD/CAD, said Societe Generale. Canada is slated to release CPI for April at 8:30 a.m. ET on Tuesday. The pair stalled at the 50dma, the 200dma above is situated at 1.3812 if risk sentiment "sours," writes the bank in a note to clients.
Canada will publish the consumer price index for April at 8:30 a.m. ET on Tuesday, said Bank of Montreal. Energy prices continued to climb in April, building on the prior month's surge, amid ongoing transportation disruptions due to the war in Iran, noted the bank.
Tuesday's release of Canada's April consumer price index at 8:30 a.m. ET should show a sharp rise in headline inflation, driven by food and gasoline prices, said ING. The consensus is looking for a 3.1% year-over-year print, while core measures should remain anchored around 2.2%-2.3% year over year, noted the bank.
Granite Construction (GVA) priced $600 million worth of 6.375% senior notes due 2034, the company said Monday. Granite intends to use the net proceeds along with cash on hand to pay down other debt and for general corporate purposes, it said. MT Newswires does not provide investment advice.
A senior Japanese Finance Ministry official has cast doubt on the prospect of Japan selling US Treasuries to support the yen, saying such a move could push US bond yields higher and ultimately weaken the Japanese currency, Bloomberg reported on Monday. The official said Japan has sufficient cash and deposit reserves available for currency intervention.
Akamai Technologies (AKAM) plans to offer $2.6 billion of 0% convertible senior notes due 2030 and 2032 in a private offering, the company said Monday. The company said it intends to use the proceeds to support accelerated capital expenditures tied to its Cloud Infrastructure Services business, including expansion of its global footprint, as well as for general corporate purposes.
Financial stocks advanced Monday with the NYSE Financial Index rising 1.1% and the State Street Financial Select Sector SPDR ETF gaining 1.2%. The Philadelphia Housing Index climbed 0.8%, and the State Street Real Estate Select Sector SPDR ETF rose 1.1%. Bitcoin fell 2% to $76,840, and the yield for 10-year US Treasuries was little changed at 4.60%. In economic news, US homebuilder confidence u...
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
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