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BAX Rate Path Unwinding Some Of FOMC Drop, Schembri Ahead

CANADA
  • BAX futures implied yields chip away at yesterday’s decline, mainly in the red pack with a smaller correction in whites.
  • They remain down 5-8bps over a two-day horizon but are still up strongly over the past week, with a crudely implied terminal rate nearer 3.25% than 3%, above the 2-3% neutral range estimate.
  • Text of BoC’s Dep Gov Schembri's speech is released at 0940ET before remarks at 0955ET. Potentially limited implications for mon pol, speaking on economic reconciliation with Indigenous Peoples in likely his last speech before retiring on Jun 17 but worth flagging just in case.

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