Surprise retail sales drop
Canadian retail sales fell 0.3% in January compared to a 0.4% rise expected. The miss was mostly on volatile auto sales but it's the third month of declining sales in a row.
The bond market is screaming warning signals. The overnight rate in Canada is 1.75% and the 10-year yield is trading down 5.2 basis points to 1.615%. That's a 13.5 basis point inversion. On the 5-year note the inversion is 25 basis points.
The Bank of Canada has been a disaster.
