GoC Yields Firmer

GoC yields are firmer, tracking alongside an upturn in yields globally as hawkish comments from Bank of England and European Central Bank officials resonate. Central bankers are increasing making noise that the era of ultra accommodative policy is coming to an end.

Another missile test by North Korea that passed over Japan may be restraining the pick-up in yields, however. The 2-year GoC has climbed 1.5 basis points to 1.590%, the 5-year has moved 3.0 bp higher to 1.806%, and the 10-year is 4.0 bp firmer at 2.096%.

The S&P/TSX 60 index futures flat in pre-market trading. Wall Street is mixed, with only mild moves so far. European bourses are mildly in the red, with the Euro Stoxx down 0.1%. In Asia, Japan’s Nikkei 225 improved 0.5%, Hong Kong’s Hang Seng was up 0.1% while China’s CSI 300 was nearly flat.

USD/CAD fell to 1.2129 as NYMEX crude oil topped $50.00, but jumped to 1.2167 as crude slipped marginally below the $50 mark, only to decline back to 1.2138 currently as crude hits $50.00 again.

Existing home sales for August are expected Friday. The Q2 national balance sheet accounts report will also be released, which contains the household debt-to-income ratio. Action Economics said that a fresh record high for the ratio would not be a surprise.

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