Market Commentary

Updated on June 7, 2023 10:14:09 AM EDT

There was no relevant economic data posted this morning. It appears bonds are reacting to news from the Bank of Canada that they had raised their key short-term interest rate by a quarter of a percent, ending their pause in hikes. The move came as a surprise, causing a negative reaction in our bond market also since it signals inflation is still a concern in the global economy.

Tomorrow's only event is the release of last week's unemployment figures. They are expected to show 237,000 new claims for benefits were filed, up from the previous week's 232,000 initial filings. Rising claims are a sign of weakness in the employment sector, so the higher the number tomorrow, the better the news it is for rates. However, this is only a weekly snapshot that normally requires a wide variance from forecasts for it to have a noticeable impact on rates.

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