2/19/2021 5:40:29 PM GMT | By Joel Frank USD/CAD is back within striking distance of 2021 lows at 1.25889 and is testing the 1.2600 mark. CAD seems to be deriving support from a sharp rise in Canadian bond yields. USD/CAD is back within striking distance of 2021 lows at 1.25889 and is testing the 1.2600 mark. US bond yields continue to rally, with the US 10-year yield now up over 6bps on the day and above the 1.35% level. Upside seems to be as a result of increasing fears that the global (and namely US) economies are going to “over-heat” later on in the year/in 2022 as a result of 1) the unprecedented amount of fiscal and monetary stimulus unleashed in 2020 to combat Covid-19 pandemic induced economic weakness and 2) vaccines bringing the pandemic under control and unleashing more than a year’s worth of pent-up demand.