May 11, 2022 17:57 GMT
- BAX futures implied yields have kept much of the post-US CPI rise, up 6bps in the Dec white as they close in on the steepest the curve has been through the 2022.
- 4bp increases through the red pack keep the curve particularly flat thereafter, crudely implying an overnight rate peak between 3-3.25%.
- BoC’s Dep Gov Gravelle speaks tomorrow (text 1135ET, speaking 1150ET). We expect a reiteration or implication that a 50bp hike will be considered for Jun 1 (last Macklem comments) and look out for anything on pace of getting back to neutral.