June 12, 2017

On Monday, the S&P 500 fell 0.1% while Toronto fell 0.6%.

The yield on the five year government of Canada bond rose by over 10% today from a paltry 0.959% to a still paltry 1.059%. This rate is still astonishingly low. But a gain of over 10% in this yield in one day is a big move.

It was likely because of this that the rate rest preferred shares were on the rise today.

Experts have predicted about 100 of the last zero interest rate increases in Canada. Once again experts are smelling an interest rate hike. Perhaps this will be the time it actually happens.

The Canadian dollar is suddenly above 75 U.S. cents.

On another topic and one which could affect markets tomorrow, I have to respect the U.S. system in some ways. Congress has the ability to haul just about anyone in front of them for questioning. And it is serious jail time if they are later found to have lied in that testimony. Baseball home run king Barry Bonds came extremely close to jail time. Not for using steroids but for allegedly lying to congress about it. Martha Stewart’s jail time was NOT for insider trading. It was for lying to the FBI about her insider trading.

We have the sitting Attorney General called in to testify tomorrow. The recently fired FBI chief was already called in. Another ousted Cabinet minister or two might be called in. (Flynn). The President himself might be called to testify. I don’t know if any other country has these kinds of checks and balances on the leaders of government.