The Liberal Party didn't even recognize the existence of the fiscal imbalance, even though they created it.

The existence of this Left Party is going to make it so much harder for either the centre-left on the one side or the centre-right on the other to form a coalition for a long time.

There will have to be some major changes as time passes if the fiscal situation remains the same.

You have to be positive on 10-year bonds when you expect lower inflation. I don't expect the Bank of Canada to raise rates at its next meeting because inflation is low and going lower.

The signal is that if we have good growth in 2006 but no inflation, there is no need to raise rates. I would even say, one more hike (this year), but not necessarily at the next announcement.

A low inflation number is positive for bonds. It is possible that most of the tightening could be done.