Options traders are paying the most in six months to protect against declines in the largest Chinese exchange-traded fund on concern economic growth is slowing amid a selloff in emerging-market equities.
The Bank of Canada will probably keep its main interest rate unchanged for a seventh straight meeting today, as economic risks posed by indebted foreign governments outweigh concerns about quicker domestic inflation.
The gap between yields on Canadian 10-year bonds and comparable U.S. Treasuries, already at the widest in almost 1 1/2 years, may widen as the difference in interest-rates between the two countries increases.
Canadian long-term bond yields are falling to the lowest level in more than four years relative to U.S. Treasuries on speculation that inflation in the world’s 10th-largest economy will remain in check.
Canadian Prime Minister Stephen Harper is turning his government’s focus to consumer issues such as the cost of telephone and cable TV as he prepares to outline his agenda for the last two years of his mandate amid a slowdown in economic growth.