BlackRock Sees Canada Debt Beating U.S. Again on BOC Caution
- TD takes the opposite view, predicting underperformance
- Relative pace of rate hikes is key question for 2018
Photographer: Pawel Dwulit/Bloomberg
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Canadian government debt is poised to beat U.S. Treasuries again in 2018 as the Bank of Canada will probably trail the Federal Reserve in raising rates, according to BlackRock Inc.
The world’s largest money manager expects no more than two hikes from the BOC next year, compared with as many as four from the Fed. With the U.S. jobless rate at a 17-year low, the Washington-based central bank has already been more aggressive in 2017, tightening three times, compared with two times for its counterpart in Ottawa.