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BAX Curve Continues To Price Cuts Post BoC Decision

CANADA
  • BAX implied yields have been lifted 4bps for the front Jun’23 and 7-7.5bps through 2H23 since the BoC decision, buoyed by the Bank noting that getting inflation the rest of the way back to 2% could prove to be more difficult.
  • Maintaining a hiking bias does little to change the shape of the curve though, with 41.5bps of inversion with the BAM3/Z3 vs 44.5bps prior.
  • Governor Macklem’s press conference follows in 20mins.

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