Daily Market Commentary
March 9, 2007
It is employment Friday. First out was Canada's report and once again, it surprised on the upside with 14k new jobs added and the rate falling to a 30 year low of 6.1%. Our trade surplus surprised on the upside also, coming in at $6.3 billion. The Loonie has bounced on this release to the 1.1734 from the 1.1800 level.
The all important US report revealed an increase of 97k in non-farm payrolls. While this was on consensus, January and December's numbers were revised upwards by 55k.This, combined with a fall
In the rate to 4.5%, has sent bond traders scurrying , with the all world benchmark 10 year Treasury down by a full half point.
In other news, Telus came to market with a $1 billion, two part bond issue, a $300mm 5 year at 62bps over Canadas and a $700 mm 10 year at 98 bps over. The issue was $ 200 mm larger than planned, reflecting strong demand for non-bank bonds.