Reduction in size of 🇺🇸Fed’s balance sheet &higher interest rates than investors anticipate, may contribute to rise in yields in coming yrs.

Muted 🇨🇦inflation &economic growth positive. Exports &business investment disappoint. Expect BofC to remain neutral on interest rates.

Widespread drop in Cdn export volumes in Feb suggests economy may still be struggling &BofC correct in being cautious on the growth outlook.

January 🇨🇦GDP growth follows big gains in prev 2 months &sets stage for faster growth than BofC’s annualised 2.5% rate forecast.

Are Cdn mkts ignoring BofC uncertain economic outlook &pricing in rate hike? Reasons Cdn monetary policy may head opposite direction to US.