5. June 2012 06:03
Yields remain virtually flat as markets wait for the outcome of an emergency conference-call by G7 finance ministers.
As expected the Bank of Canada is maintaining its benchmark overnight rate at 1%. The accompanying statement cites the situation in Europe, the slow recovery in the U.S. and the lower than projected GDP growth in Canada. The bank continues to be concerned about rising household debt and says it will withdraw economic stimulus if conditions warrant.
The value of Canadian building permits dropped 5.2% in April, much sharper than the 1.9% expectation. The residential sector saw a 2.8% decline, its 4th straight monthly drop. Non-residential permits slipped 8.4%. Ontario led the decline. Y/Y the value of building permits is up 24.3%.
The ISM Non-manufacturing composite in the U.S. for May moved up 2 notches to 53.7. It’s the 29th consecutive, monthly increase. It had been expected to remain flat.