Cdn bonds got smacked around 2 weeks ago as their central bank started talking tough. Their economy is hotter that the US economy so their inflation fighting scare tactics seem to supported by the data. In the end, the CGB market is utterly controlled by US eurodollar futures because the Cdn economy is tied down by a huge anchor that sits on American soil.
On Friday they got really carried away and all the people who dumped the market April 25 seemed to dive back in. That rally made them the richest market in the world:
So what would I buy on the other side? For that you’ll have to wait (or hire me).
