08 Jun 2023

It’s the summer of 2023, and Canada’s biggest exports are wildfire smoke and higher interest rates. Yields are up across most developed economies after the Bank of Canada joined the Reserve Bank of Australia in demonstrating that central bank monetary tightening cycles aren’t yet complete. Equity futures are holding steady, short-term Treasury yields remain elevated, and the dollar is holding yesterday’s against most of its major rivals. The Canadian dollar is only incrementally higher after the central bank opted to raise rates, suggesting that market conviction was low and investors were well prepared ahead of the decision – but also that...