This Monday morning's bond market is as tranquil as a yoga retreat, with traders meditating ahead of Wednesday's FOMC decision.
No one expects any surprises from the Fed, but Chair Powell's press conference could still send yields on a rollercoaster ride, depending on his choice of words.
Equally pivotal for Canada's destiny is Prime Minister Carney's rendezvous with the Trade Warlock in D.C. If standard economic logic prevailed, Trump would want to signal optimism. After all, he supposedly likes Carney and knows that Canada is a vital resource supplier and the "biggest client" (Carney's words) of 40 of the 50 U.S. states—despite his "We don't need Canada" bluster.
However, Trump's fervent desire to repatriate industries means he'll likely wield U.S. influence, sow uncertainty, and issue threats to complicate negotiations.
In any event, here's what's influencing Canada's 5-year yield this morning, and in what direction.
