Economics
Traders Stick With Canada Rate-Hike Bets Despite Fresh Lockdowns
- Omicron doesn’t blunt market expectations for multiple moves
- Aggressive Covid restrictions imposed in Ontario, Quebec
Traffic is scarce on Montreal streets this week after the imposition of a new curfew to curb the spread of Covid-19.
Photographer: Christinne Muschi/BloombergThis article is for subscribers only.
A wave of new Covid-19 restrictions over the holidays hasn’t blunted market bets that the Bank of Canada will start raising interest rates early this year.
Investors set aside worries about omicron to drive Canadian government bond yields higher on the first day of trading in 2022, with markets cementing expectations for five rate increases this year. At least one hike is fully priced at either the first two Bank of Canada policy decisions -- Jan. 26 or March 2.