WS #16635
Macro conditions are tightening, with the Bank of Canada raising rates by 25bps to 2.50% and the US Treasury borrowing a record $839 billion in a single week. This fiscal and monetary strain is contributing to the risk-off environment, pressuring high-multiple growth stocks and REITs. The record borrowing highlights the US government's liquidity demands, which may crowd out private investment and keep bond yields elevated, further weighing on equity valuations.
Macro Liquidity & Fiscal Strain
Macro conditions are tightening, with the Bank of Canada raising rates by 25bps to 2.50% and the US Treasury borrowing a record $839 billion in a single week. This fiscal and monetary strain is contributing to the risk-off environment, pressuring high-multiple growth stocks and REITs. The record borrowing highlights the US government's liquidity demands, which may crowd out private investment and keep bond yields elevated, further weighing on equity valuations.