US Trade Deficit Widens to Biggest in More Than a Year — desk brief, Tue 07 Jul 2026
Treasuries (close 2026-07-06): 2s 4.13%, 10s 4.48%, 30s 4.99%.
Tape (close 2026-07-06): VIX 15.57, 2s10s +35bp.
Narrative: A week later and not much has changed with the Strait of Hormuz situation
What mattered:
• US Trade Deficit Widens to Biggest in More Than a Year
• Canadian Trade Balance Actual 4.24B (Forecast 2.5B, Previous 2.72B)
• US International Trade balance -$77.6B vs -$78.5B estimate
• Canada May trade balance $4.24 billion vs $2.85 billion expected
• European FX news wrap: Markets remain rangebound amid lack of catalysts