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BAX Inversion Builds

CANADA
  • BAX futures see growing inversion, with the Mar’23 near unchanged (+0.005) but rallying further out with the Dec’23 re-approaching session highs (+0.09).
  • It pushes BAH3/Z3 inversion to a record -0.80 vs a smaller move to -0.52 (-0.03) in the Eurodollars equivalent.
  • Local data haven’t been wildly different to consensus (existing home sales modestly weaker) but the perception of the BoC being closer to the end of its hiking cycle with household debt sensitivity continues to weigh.

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