As the Bank of Canada considers ditching oversized interest rate hikes, it is dealing with an economy likely more overheated than previously thought but also the bond market's clearest signal yet that recession and lower inflation lie ahead. Canada's central bank says that the economy needs to slow from overheated levels in order to ease inflation. The bond market could be flagging that risk.
As the Bank of Canada considers ditching oversized interest rate hikes, it is dealing with an economy likely more overheated than previously thought but also the bond market's clearest signal yet that recession and lower inflation lie ahead. Canada's central bank says that the economy needs to slow from overheated levels in order to ease inflation. The bond market could be flagging that risk.
Treasury yields pared sharp
gains on Friday after a strong U.S. jobs report for November
showed a resilient labor market with rising wages, a potential
thorn for the Federal Reserve as it moves to ...
* Canadian dollar weakens 0.4% against the greenback. * For the week, the loonie was down 0.8% * Canada adds 10,100 jobs in November. * Canadian bond yields ease across curve. By Fergal Smith.
Treasury yields were little
changed on Friday after a strong unemployment report for
November showed a resilient labor market with rising wages, a
potential thorn for the Federal Reserve as it moves ...
The Canadian dollar weakened against its U.S. counterpart on Friday as domestic jobs data caused few surprises, while a stronger-than-expected U.S. jobs gain ran counter to hopes that the Federal Reserve would soon slow the pace of rate hikes.
* Canadian dollar weakens 0.2% against the greenback. * For the week, the loonie was on track to fall 0.6% * Canada adds 10,100 jobs in November. * Canadian bond yields rise across curve. The Canadian dollar weakened against its broadly stronger U.S. counterpart on Friday as investors weighed U.S. and Canadian jobs data for its impact on the pace of central bank interest rate hikes.
European government bond yields rose after Friday data showed U.S. employers hired more workers than expected in November and raised wages, complicating the Federal Reserve's intention to start slowing the pace of its interest rate hikes this month.
A look at the day ahead in U.S. and global markets from Dhara Ranasinghe. It's payrolls Friday, yet the most keenly awaited U.S. economic data point may not hold much sway over markets that are already behaving as if the U.S. tightening cycle is over.
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