The economic calendar is light to begin the March break week...

Posted: Monday, March 12, 2018 - 08:49 EDT

The economic calendar is light to begin the March break week, although both Asian and European equity markets continue to track higher as a result of strong jobs data reported in the U.S. on Friday.  Ten year U.S. Treasury yields have also moved higher during the month, currently at 2.89%, after reaching a low to start the month at 2.80%.  Mid-week, the U.S. will release February retail sales data that is expected to see an increase of 0.3% for the month.  In Canada, BOC Governor Poloz will speak tomorrow about today’s labour market and the future of work.  Following last year’s impressive job growth in Canada, that has the unemployment rate currently at 5.8%, deputy governor Lane reinforced the view that higher rates are likely needed over time.

Canadian corporate credit issuance is expected to decelerate this week as many investors will be away from their desks as a result of March break.  However, this follows a week of strong issuance after the spike in volatility over the past month.  Flows on Friday were light with the focus remaining on recent issues including BCE, Choice Properties REIT and maples.  The positive tone from the jobs data helped spreads tighten anywhere from 1-2bps to end the day.

Equity Markets:

 

  Index Level % Change QTD YTD Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
S&P 500 2,786.57 1.74% 4.63% 4.63% 3.85% 3.82% 6.07% 3.09% 4.48% 6.64%
TSX

15,577.81

0.25% -3.44%

-3.44%

5.45% 4.53% 2.41% -1.64% 3.68% 4.44%

Rates:

 

Today

% Change

QTD change

YTD change

Sept 30 2016

Dec 31 2016

Mar 31 2016

June 30 2017

Sept 30  2017

Dec 31  2017

Canada 5 Year

2.085%

0.04% 0.22% 0.22% 0.615% 1.150% 1.119% 1.393% 1.753% 1.866%
Canada 10 Year 2.268% 0.04% 0.22% 0.22% 0.990% 1.750% 1.625% 1.762% 2.099% 2.045%
Canada 30 Year 2.440% 0.04% 0.17% 0.17% 1.658% 2.350% 2.302% 2.148% 2.472% 2.266%
30yr Generic Corporate A rated Spread 1.210% 0.00% 0.00% 0.00% 1.530% 1.390% 1.330% 1.210% 1.240% 1.210%
30yr All-in Corporate A rated Yield

3.650%

0.04% 0.17% 0.17% 3.188% 3.740% 3.632% 3.358% 3.712% 3.476%
US 10 Year 2.905% 0.01% 0.50% 0.50% 1.60% 2.50% 2.39% 2.31% 2.33% 2.41%
CDX IG 54.044 -0.295               7

The information contained herein is intended for advisors for general information only and is compiled from sources believed to be reliable, but no representation or warranty, express or implied, is made as to its accuracy. All opinions contained in the commentary and expressed by the portfolio manager are subject to change without notice and are provided in good faith without legal responsibility. All market data is sourced from Bloomberg.