Markets

Canadian Market Outlook

GoCs have steadied at lower levels after having consolidated recent gains on Monday. The firmer tone for stocks has helped keep a floor under yields. European services PMIs have pointed to acceleration in overall economic activity in that region. In addition, the Reserve Banks in Australia and India respectively and separately refrained from cutting rates further.

Supply will be a headwind, featuring the first leg of the U.S. $58 billion coupon package. The 10-year yield has stabilized at 1.35%, having rebounded from a five-week low at 1.276% on Monday, but trading comfortably below the March 27 peak at 1.444%. And USD-CAD has traded around 1.2475. The domestic data calendar takes a breather before housing and employment data toward the end of the week. C$10.5 billion in bills will be auctioned at the regular T-bill auction (bidding deadline at 10.30am ET).

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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