Highlights
Between now and late 2014, the FOMC will have many occasions to revise its assessment of when a first rate hike will be appropriate. Still, for the time being, not only has the Fed anchored short term rates for longer but it appears that the lifespan of the range in which 10-year Treasuries have traded since August has also just been extended.
With the BoC disinclined to raise rates anytime soon and Canada a member of the select group of countries rated AAA by Standard and Poor’s, we expect 10-year Canadas to follow the lead of the senior market south of the border.
