Monday's bond market was as tranquil as a yoga retreat, with traders mostly meditating ahead of Wednesday's FOMC decision.
No one expects any surprises from the Fed this week, 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 PM Carney's Tuesday rendezvous with the Trade Warlock. If standard economic logic prevailed, the President would want to signal optimism. After all, despite Trump's "We don't need Canada" bluster, 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.
However, Trump's fervent desire to repatriate industries means he'll likely leverage U.S. clout, sow uncertainty and issue threats to complicate negotiations.
In any case, here's what's moved Canada's 5-year yield on Monday, and in what direction.
