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BAX 2023 Inversion Builds To Most Since Jan

CANADA
  • BAX futures have pulled further off session highs to trim gains to a still sizeable +0.05 for the Jun’23 and +0.15-0.165 from the Dec’23 onwards after being dragged higher by US JOLTS.
  • It leaves Dec’23 implied yields currently at what would be the lowest close since Mar 27, whilst the BAM3/Z3 time spread pushes out to -0.585, its most heavily inverted since late January.
  • A light local docket tomorrow but US ADP and ISM services could spark sizeable spillover judging by the magnitude of today’s reaction to the JOLTS miss.

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