08:58 AM EDT, 07/02/2024 (MT Newswires) -- It's a relatively quiet start to a holiday-shortened week for Canadians after Monday's national holiday and a lighter-than-usual week for the United States ahead of Wednesday's early close and Thursday's holiday, said Scotiabank.

Canadian markets are catching up to developments with a spike in yields as the two-year yield is 5bps higher and the 10-year is 14bps higher, stated the bank.

The macro calendar only has a few things to consider, noted Scotiabank. Stocks are mildly lower early Tuesday, the US dollar (USD) is broadly stronger except versus the Canadian dollar (CAD or loonie) and sovereign bonds are little changed following Monday's eurozone government bonds (EGB) sell-off after Sunday's first round of the French parliamentary elections.

French 10s sovereign bonds are about 7bps higher since Friday which captures the election effect and closing in on the June 11 high in the aftermath of the European Union parliamentary elections. This is the last day for strategic withdrawals by candidates in constituencies to back more centrist prospects and weaken the far-right National Rally's (RN) chances of emerging victorious in the second round this coming Sunday, added the bank.