Commenting on the Gross Domestic Product (GDP) report from Canada, “Q2 GDP was slightly better than feared at -38.7% on sharp contractions across consumption and business investment, although industry-level growth confirmed a solid end to the quarter with GDP rising 6.5% m/m in June,” noted TD Securities analysts.
Key quotes
“Flash estimates point to another 3.0% m/m increase for July, which would put Q3 tracking near 40%. A stronger-than-expected recovery should damper expectations for additional stimulus from the BoC even if they are unlikely to tighten policy anytime soon.”
“There was not much of a reaction in rates markets, and although we regard this as a very constructive report we expect to see rates bull flatten in the coming days on the back of steady demand for fixed income.”
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