15. October 2010 05:48
Markets are digesting considerable amounts of information this morning, with the net effect (at least with the CMB) is that rates are roughly flat to yesterday.
US CPI numbers for September showed less price inflation than the market expected (+0.1% vs. the expected +0.2%), which supports the case for lower bond yields. Also supporting the case for lower bond yields is the continued chatter by Ben Bernanke regarding the Fed restarting its Treasury purchase program, specifically in a speech this morning.
On the more bullish side in the US, September Retail Sales growth of 0.6% was higher than the expected 0.4%, and the Empire Manufacturing Index popped with a value of 15.73 vs. the expected 6.00.
Closer to home, some better-than-expected results as Manufacturing Sales grew by 2.0% in August (+0.5% expected), and while New Motor Vehicle Sales were down, the drop was less than expected.
For next week, in Canada: BoC Policy Announcement (Tue), Wholesale Trade, BoC Policy Report (Wed), Leading Indicators (Thu), CPI and Retail Sales (Fri)
In the US: Capacity Utilization, Industrial Production (Mon), Housing Starts & Building Permits (Tue), Beige Book (Wed), Leading Indicators, Philly Fed (Thu).