CAD Surges Amid US Treasury Intervention

The Canadian dollar experienced a significant surge yesterday due to broad-based US dollar selling pressure. The move was triggered by Treasury Secretary Bessent's decision to step into the long-end of the US Treasury market and double the size of Treasury buy-backs.

As a result, the US 30-year Treasury yield plunged nearly 14 basis points, a successful outcome for Bessent's objective to slow the rise in US borrowing costs. The US dollar was heavily impacted, plummeting across the board.

The FOMC minutes released yesterday were met with little excitement from markets, offering no new information to digest. Meanwhile, equity markets in Asia finished higher, with Hong Kong's Hang Seng rising 0.80% and Japan's Topix advancing 1.18%.