I thought the bond market's rate cut bets were too aggressive, and today's post explains why I believe that new rate-hike warnings are a similar over-reaction.
The Bank of Canada held its policy rate steady last week, but it also pushed back against the bond market's bet on rate cuts before the end of the year.
Last week the BoC and the Fed both made hawkish statements and the latest CDN and US employment data beat expectations. So why are bond yields plummeting?