Navigating Bond Markets and Economic Risks

This chapter examines the current dynamics of bond markets, emphasizing the unusual behavior of the yield curve amid rising concerns over long-term rates. The discussion highlights the implications of these trends for global financial systems, particularly in relation to a potential non-confidence vote in the French government and its effects on Canada's economy. Additionally, it explores the interconnectedness of international banking and the risks of a liquidity crisis, alongside historical practices of central bank intervention and their relevance today.