Historically, Trump's statements have had significant impacts on financial markets, particularly when they involve unexpected policy proposals or geopolitical developments. In this case, the idea of Canada becoming a US state would have far-reaching implications for trade, regulatory frameworks, and economic integration. The potential elimination of tariffs and taxes, as well as the proposed increase in military power, could lead to increased government spending and borrowing, which may put upward pressure on interest rates and negatively impact the bond market. Furthermore, the market may view this proposal as a significant departure from established geopolitical norms, leading to increased uncertainty and volatility. As a result, bond investors may demand higher yields to compensate for the increased risk, potentially leading to a decrease in bond prices. Overall, Trump's statement is likely to be viewed as bearish for the bond market, at least in the short term, as investors weigh the potential implications of such a significant policy shift.