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BAX Yields Rise Through 2023 Ahead Of BoC

CANADA
  • BAX yields have extended increases from early trade ahead of the BoC decision, with ~8bps increases on the day from the Dec’22 contract through to Mar’24.
  • Peak BAX yields are still some 25bps off highs from last month but crudely imply an overnight rate peaking at circa 3%, right at the top of the BoC’s neutral range estimate and potentially creating scope for a pullback if the statement is deemed less hawkish than anticipated.

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