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BAX Futures Yields Cranks To New Highs

CANADA
  • BAX futures implied yields continue to rise to new highs in early trade, adding another 5-6bps through the white pack and early reds (again exceeding the move in Eurodollars).
  • This sees market expectations further above rate calls of most analysts, roughly implying a policy rate topping out at circa 3.25%, just above the BoC’s newly upward revised 2-3% neutral range estimate.
  • Potentially key triggers ahead: Fed’s Powell speaks from 1300ET and then late on BoC’s Macklem’s comments to reporters are released at 1900ET.

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