Markets

Canada Market Outlook

Stocks and bonds are rallying in the wake of the (finally) completed Fed hike. GoCs have gained alongside Treasuries, with Asian and European bonds also improving. Equities were firmer in Europe and Asia. Yield curve flattening is the play today. Crude oil is lower, however, with NYMEX at US$35.50 from a session high of $37.00 yesterday, which could provide some restraint for the S&P/TSX. The 2-year GoC was holding at 0.55%, which is near where it finished the session Wednesday. The 10-year yield had fallen to 1.464% from 1.510% Consequently, the 2s10s curve had narrowed 4.5 bps to +91.5 bps. GoCs have kept pace with Treasuries since the Fed news, with the spread versus 10-year Treasuries steady at -78.5 and the spread versus 2-year Treasuries also little changed at -45 bps. Today's calendar is a blank slate, putting the focus on the busy slate of U.S. economic data.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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