Rates moved lower this past week in both Canada and the USA. However, the Spread moved decidedly lower in Canada, dropping from 0.14x to 0.10x, while in the USA, the Spread ended the week unchanged, at 0.21x. As we show on the two 10-year/2-year Spread charts for the last six years and the past 3 years, the Spread is nowhere near challenging the Inversion level. In fact, the U.S. Spread is close to testing its intermediate down-trend line.
You can access this week’s report on the spread of the 10-year/2-year yield curve here … … RB_051019
