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BAX Futures Rise On Lack Of New Hawkishness

CANADA
  • After little immediate impact, the market now appears disappointed by a lack of new hawkishness in Macklem’s prepared remarks, with BAX futures up as much as 27 ticks in the red pack having been 20 ticks prior to Macklem speaking.
  • It now more broadly tracks the move seen in Eurodollars on the day, having initially lagged.
  • It very crudely implies a terminal policy rate close to 3% having been north of 3.25% on Friday.

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