5. May 2011 03:55
The bond market continues to rally as risk aversion remains the dominant theme.
Growth in Canadian Building Permits for March of 17.2% [exp. -2.5%] should, in isolation, send rates higher.
Any positive economic story that the Permits number told was overshadowed by US weekly Initial Jobless Claims of 474k, which continue to remain stubbornly high. Last week’s print was 431k and expectations for this week were 410k. Ongoing labour market weakness will continue to undermine the notion of a self-sustaining recovery, and all else equal, will conspire to keep rates lower than what they otherwise would be.
Watch out for Friday’s Employment numbers for April, both in Canada and the US.