The Bank of Canada hiked its overnight rate by 25bps to 4.75% as forecast by Scotia Economics. This was a surprise to markets and so the Canada two-year yield jumped by 21bps post-statement while the C$ appreciated by half a penny at first before reining in some of that reaction because the BoC decision hit US short-term rates. The US two-year yield jumped by 7bps while raising the probability of another Fed hike on the logic that multiple central banks are not done yet. July is priced for another 25bps BoC hike. Markets had gone up to the 10amET statement pricing less than 50% odds of a hike and only 8 out of the ... (full story)