Halister News

(Bloomberg) -- Bank of Canada seen maintaining overnight lending rate of 0.5% (all forecasts in Bloomberg survey at 0.5%).

• See today’s market commentary from Bloomberg strategist Vincent Cignarella

--RICHARD WEISS

(Bloomberg) -- “While we maintain a buy-the-dip mentality from a core positioning view, our discipline tells us to be better sellers on upticks from a trading perspective given that the moving averages are in a negative cross now and because yields are above them,” independent strategist Marty Mitchell says in note.

• “Yield curve is showing a corrective steepening bias as the street preps to bring $32bln of fresh 10yr and 30yr supply to market”
• Other observations from strategist morning notes:
• BMO (Aaron Kohli): “Diverging monetary policies continue to support relatively higher yields and a steeper curve in the US vis-à-vis Japan”
• CRT (David Ader): “We don’t find ourselves looking for an immediate give-back of the gains, but rather a consolidation as the market works through the supply and looks for stabilization in risk assets”

(Bloomberg) -- $20b 10Y reopening at 1pm ET should receive “healthy demand” based on cheapening over past month, large short base indicated by “deeply negative” repo rate, and “renewed global duration rally,” Nomura strategists say in unsigned note.

• These factors should outweigh valuation that “is still unattractive both outright and on the curve” and seasonal weakness in rates