The Donald won't be happy. As almost unanimously expected, the FOMC left its target rate at an average of 4.375%.
The Donald won't be happy. As almost unanimously expected, the FOMC left its target rate at an average of 4.375%.
Canadian rates barely moved after today's 2:00 p.m. ET Fed decision. The reason: Fed Chair Powell's messaging was as revelatory as reruns of "The National"; markets had seen this episode before. Nonetheless, we did spot a few subtle but important twists in
Canadian rates barely moved after today's 2:00 p.m. ET Fed decision.
The reason: Fed Chair Powell's messaging was as revelatory as reruns of "The National"; markets had seen this episode before.
Nonetheless, we did spot a few subtle but important twists in J-Pow's outlook today (more on that).
Here's what else was moving Canada's 5-year yield today, and in which direction:
Trump and Carney's much-anticipated first encounter is over. In a display of diplomatic restraint, the two leaders managed a meeting that was both productive and devoid of verbal fireworks, so that's a positive. Here are some of the highlights, complete with mortgage implications:
Trump and Carney's much-anticipated first encounter is over. In a display of diplomatic restraint, the two leaders managed a meeting that was both productive and devoid of verbal fireworks, so that's a positive.
Here are some of the highlights, complete with mortgage implications:
Canada's bond traders began the day fidgeting like they’re waiting for a dentist appointment. Canadian markets were almost singularly focused on news out of the Trump-Carney summit. The noon-time faceoff in Washington, D.C. started high-stakes negotiations that could take Canada's bond yields on a
Canada's bond traders began the day fidgeting like they’re waiting for a dentist appointment. Canadian markets were almost singularly focused on news out of the Trump-Carney summit.
The noon-time faceoff in Washington, D.C. started high-stakes negotiations that could take Canada's bond yields on a rollercoaster ride. Here's more on what happened.
This is what else was moving Canada's 5-year yield today, and which way the bond winds were blowing:
There's been quite a lull on the national rate leaderboard, but a pulse was detected on Monday. There were four moves among the rate leaders, the most in two weeks. Among the notable changes:
There's been quite a lull on the national rate leaderboard, but a pulse was detected on Monday. There were four moves among the rate leaders, the most in two weeks.
Among the notable changes:
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
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.
U.S. yields rallied hard on Friday, and Canadian yields were hot on their heels. These are some of the factors that fuelled the bond market theatrics, and their directional influence.
U.S. yields rallied hard on Friday, and Canadian yields were hot on their heels.
These are some of the factors that fuelled the bond market theatrics, and their directional influence.
America's labour market still has a heartbeat, and that's supporting both U.S. and Canadian rates this morning. Here are the vital signs from America's marquee economic release: * April job growth: +177K (est. 138K | prior 185K) * Unemployment: 4.2% (est. 4.2% | prior 4.
America's labour market still has a heartbeat, and that's supporting both U.S. and Canadian rates this morning.
Here are the vital signs from America's marquee economic release: