The bond market rally continued in August. Investors focussed on potential European Central Bank measures to stimulate that area’s growth and avoid possible deflation developing. Geopolitical concerns, particularly Ukraine/Russia, also generated some demand for bonds. Economic developments in Canada and the United States were generally good, but ignored by the market as central bankers in both countries reiterated their dovish concerns about the durability of the expansion. The FTSE TMX Canada Universe Bond index returned 1.07% in the month. (more…)