US-Canada 50% Tariff Deadline Looms as Trade Talks Stall and Global Bond Yields Hit Multi-Decade Highs

Currency and bond markets are under simultaneous pressure from two converging forces heading into Tuesday night. The US and Canada face a midnight deadline before a 50% tariff on billions of dollars of Canadian goods takes effect, with the US privately signaling that the chances of a deal are a coin flip or worse, according to people familiar with the talks. USD/CAD was trading around 1.3897, rebounding from a recent low near 1.3850, as traders looked past Canada's hotter-than-expected July inflation report and focused on the trade outcome.

Separately, a broad global bond selloff is rattling multiple asset classes. The 30-year US Treasury yield topped 5.33%, a 19-year high, driven by concerns over ballooning government deficits. French and German 10-year yields hit their highest levels since 2008 and 2011, respectively, while Japan's 10-year yield reached a 30-year high.

The Dollar Index was approaching a potential bear-flag breakdown near 99.55, silver was consolidating after a bullish run, and gold and equities also registered the pressure from rising long-term rates. The convergence of a unresolved US-Canada trade dispute and a global bond market selloff is amplifying volatility across forex, rates, and commodities simultaneously.