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BAX Curve Steepens, Jobs Report Tomorrow

CANADA
  • The BAX curve has continued to price in larger hikes throughout the day, starting early on after the ECB slowed its net asset purchases at a faster pace.
  • It has been led by Dec whites and the red pack, which sees implied yields for Dec’22 near recent highs before the curve levels off quickly as more front-loaded profiles are priced compared to the past two meetings.
  • Tomorrow: The employment report for Feb is an important one to see how the economy bounced back from tougher Omicron restrictions than those in the US. The u/e rate is seen partially recovering to 6.2% after +0.5pps to 6.5% in Jan) as participation also recovers.

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