Canadian yields spiked on Tuesday after core inflation surprised. That combined with further bond selling following Friday's Moody's downgrade.

Here's how these and the day's other economic twists moved yields:

As expected, Canada's most-watched inflation measure hit the brakes hard, mainly because gas prices did too. Removal of the carbon tax and falling oil prices pulled CPI growth well below target.

Core inflation is a whole different story. Strip away the volatile stuff, and underlying inflation grew more concerning. The Bank of Canada is about as pleased with these numbers as a central banker who just spilled coffee on their freshly ironed forecasts.

Let's dissect how these numerical contradictions could impact mortgage rates:

Folks worried that U.S. stagflation will spill over Canada's border might find the chart below interesting. It shows what the Wall Street herd thinks will happen with U.S. GDP and core PCE inflation. It's like choose-your-own-adventure for economists.

With no major Canadian data to stir the pot on Friday, the 5-year yield meandered like a Bay Street economist after a three-martini lunch. Here's what moved it, and in which direction.

Fresh CREA figures confirm that Canada’s housing sector is once again an innocent bystander in a geopolitical bar fight, this time courtesy of Trump's tariff war.

Sales are spinning their wheels while inventory stacks up like unclaimed luggage—because when the U.S. President treats trade diplomacy like a demolition derby, buyers hit the brakes and wait for the wreckage to clear.
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"There is no doubt that the ongoing trade conflict with the U.S. has weighed on consumer confidence and the housing market across the country," said National Bank Economics, adding that "potential buyers [are] waiting for more economic visibility before acting."

In the event any sellers are still clinging to hope like it’s 2021, here's the latest reality check:

A hefty helping of U.S. economic data has Canadian yields on the down escalator. Here was Thursday’s menu of bond movers and which way they nudged rates.