This is not the pattern we like to see in Canada's 5-year bond.
"Cup and handle" patterns like this tend to break out and follow through about two-thirds of the time.
If that happens here, it projects the yield rising to roughly 4.20%—calculated by
Canada's rate market needed a win like this, and it got it. #Average core inflation# has delivered again. For the first time since the seemingly ancient days of mid-2021, it starts with a "2."
Today's welcomed report read as follows:
* Headline inflation: 2.9%
It's been one of the most action-packed weeks for Canadian housing policy in years. But before we unwrap that, let's talk about what's expected to be a volatile week for rates—following Iran's attack on Israel.