Kremlin dismisses Lithuania's allegation that Russia plans to attack infrastructure as scare stories intended to pave the way for further militarization.

2-year bond futures (TS) most-active contract down 0.01%, 5-year (TF) most-active contract unchanged, 10-year (T) most-active contract down 0.01%, 30-year (TL) most-active contract up 0.02%.

Market analysts say the Bank of Canada is adopting a wait-and-see stance. With the labour market weakening and core inflation hovering around 2%, there is no urgent case to hike, yet the case for cuts is also limited. Q1 2026 GDP was flat, though recent months show a rebound in activity, reducing the need for additional easing. Energy prices have fallen sharply since June, easing some upside inflation risk, but policymakers see little evidence of broad pass-through to other prices. Analysts expect the BOC to signal a neutral policy stance—keeping both rate-hike and rate-cut options open—likely nudging up headline inflation forecasts, leaving core inflation largely unchanged, and trimming growth projections to reflect weak Q1 activity.