Investors betting the Bank of Canada will cut rates in coming months to counter fallout U.S. bank collapses
The yield on short-term Canada bonds is falling at the fastest rate in decades, as investors bet the Bank of Canada will cut rates in coming months to counter fallout from the collapse of United States regional banks.
Canada’s two-year benchmark yield tumbled 42 basis points Monday to 3.532 per cent, bringing its total decline since Wednesday to about 77 basis points. The last time the benchmark dropped that much over three trading sessions was in May 1995, according to data compiled by Bloomberg.