Bond yields are falling.  They are down 7 bps this morning already to 2.16.  There’s still lots of time left today for them to reverse course, but there is reason for the decline:

• The Federal Reserve in the US yesterday told the world the economic recovery in the US will be slower than they initially thought.
• Today’s report on trade showed Canada’s trade deficit unexpectedly widened in June on falling sales of gold, energy and automobiles.

So the markets are shaky and less confident in our growth prospects.  Good recipe for continued low fixed interest rates.