Markets still see a meaningful chance of a US interest rate hike this week, even though oil, a key driver of the recent inflation scare, has fallen sharply over the past three sessions. The disconnect reflects that May's US inflation reading and weeks of elevated energy costs are already baked into the data policymakers will weigh, so a short oil pullback has not undone the broader case for tightening. Canadian bond yields remain exposed to the outcome through capital flows, even with domestic inflation cooling.
This chart is presented for general informational purposes only and does not constitute financial, investment, tax, or legal advice. Figures reflect the source and period indicated and may no longer be current.
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