• Given our forecast that U.S. GDP will grow in Q3 and later, we expect the 10-year Treasury yield to drift higher over time. Yet with core inflation remaining sticky around the current rate in coming months, the upward drift is likely to be limited. We continue to see 10-year Treasuries trading around 4.03% by year end.
  • With incoming Canadian economic data remaining supportive of our projections, we are keeping our interest rate forecast unchanged. We continue to expect the BoC to raise rates in Q1 and 10-year Canadas to trade between 3.62% and 3.825% in that quarter.