Trade Tensions Trigger Market Turmoil

In a dramatic turn of events, Canada's 2-year government bond yield plummeted to its lowest since May 2022, as global markets reel from the impact of recent trade tensions. Over the weekend, U.S. President Donald Trump imposed import tariffs on Canada and Mexico, sparking immediate retaliation from both nations.

Market Reactions and Investor Concerns

The announcement sent shockwaves through the global markets, with investors bracing for the potential fallout. The yield on the 2-year note dropped sharply by 10.7 points to 2.543% by early Monday, reflecting growing unease among investors.

Long-term Bonds Hold Steady

In contrast to the short-term bonds, the 10-year note yield remained stable at 3.064%, while the 30-year bond yield saw a slight decrease of 9.1 points to 3.147%. This divergence highlights the complex dynamics at play in the bond market amidst ongoing trade disputes.