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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
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