PRESS DIGEST- Canada- June 29
June 29 The following are the top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.
By Gertrude Chavez-Dreyfuss NEW YORK, March 27 U.S. long-dated Treasury yields fell to one-month lows on Monday, weighed down by growing uncertainty about whether the Trump administration could deliver on its campaign promise to bolster the economy. Trump suffered a major political setback last Friday when fellow Republicans pulled their healthcare plan after years of promising to abolish former President Barack Obama's 2010 health law. Yields, which move inversely to prices, had soared following Donald Trump's election as President last November on the expectation of more stimulus measures that could push inflation higher and prompt the Federal Reserve to raise interest rates at a faster pace. But since the Fed raised rates a few weeks ago and stuck to its pace of three rate hikes this year, yields have fallen. U.S. 10-year note yields have declined by a quarter of a percentage point, while that of U.S. 30-year bonds have dropped 20 basis points. "This is just follow-through from Friday. There is disappointment over the inability to pass the reform of Obamacare," said Gennadiy Goldberg, interest rates strategist at TD Securities in New York. "There was also some concern over the time line over the tax reform," he added. Investors feared that the healthcare bill's defeat augured badly for tax reform. House Ways and Means Committee Chairman Kevin Brady said his committee had been working on tax reform in parallel with the failed healthcare reform push. Brady said the committee plans to move on the tax bill in the spring. In mid-morning trading, benchmark 10-year notes gained 11/32 in price to yield 2.362 percent, down from 2.4 percent on Friday. Yields fell as low as 2.348 percent, their weakest level in one month. They were down from a three-month high of 2.63 percent on March 14. U.S. 30-year bond prices rose 15/32 , yielding 2.976 percent. Earlier, yields slid to 2.96 percent, their lowest since Feb. 28. The Treasury Department will sell $88 billion in new two-year, five-year and seven-year notes this week. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)
* Home capital provides update on Q2 2017 expenses and GIC deposit inflows