In January, we were too early recommending investors sell Canadian lumber stocks. Since then, the price of lumber only rose further, allowing these names to accrue additional gains. Despite this setback, the outlook for lumber…
Canadian government bond yields have been playing catch-up recently. 10-year yields are up more than 40 basis points since the beginning of the month, which represents a steep acceleration following a similar increase over the…
Highlights The pandemic is not yet over, but it appears that infections have peaked in the developed world and in most of the major developing economies. Economic growth will reaccelerate as social distancing abates and vaccination…
Highlights A rise in global bond yields has rarely been a reliable precursor of a stronger dollar. This is because the dollar reacts to interest-rate differentials, rather than the level of global yields. Changes in the dollar…
Highlights This week, we present the second edition of the BCA Research Global Fixed Income Strategy (GFIS) Global Credit Conditions Chartbook—a review of central bank surveys of bank lending standards and loan demand. Feature…
Highlights Global Yields: The fall in global bond yields over the past two weeks represents a corrective pullback from an overly rapid rise in inflation expectations, especially in the US. The underlying reflationary themes that drove…
Canada’s employment report showed a loss of 62.6 thousand jobs in December, which ended a seven-month streak of net job gains and was significantly above expectations that 37.5 thousand jobs would be shed. Not unlike the US…
The Canadian TSX/Venture exchange is one of the rare markets in the world trading near all-time lows. Its heavy exposure to commodities and small-cap stocks have been a major handicap this cycle, but now that a rotation out of…
On Monday, the Canadian government unveiled its spending plan, which is valued at up to C$100 billion over three years. The proposed budget will increase the 2020-2021 deficit to C$381.6 billion from the C$343 billion projected…