Yields Unmoved by the Ivey PMI

Canada Action: yields were unmoved by the Ivey purchasing managers index, as is typically the case, with GoCs maintaining the gains seen following the domestic and U.S. jobs reports.

While the 10.0k gain in domestic jobs was rather lean, it was accompanied by a steady 6.2% unemployment rate (lowest since 2008), an acceleration to a 2.2% y/y pace in average hourly earnings and 0.6% m/m bounce in hours worked.

The report is consistent with no change from the BoC in October but is supportive of a 25 bp rate increase in December. The 2-year is 3 bp firmer at 1.549%, the 5-year is 4 bp higher at 1.786% and the 10-year has climbed 4.5 bp to 2.142%. The S&P/TSX is 0.4% in the red, underperforming flat to very slight declines on Wall Street. Nymex crude oil has fallen to $49.43, weighing on the commodity heavy S&P/TSX.

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