DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

March Home Sales Jumped At End Of Month

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Bull Flattening, Knock-On Effect Of BoC's Hawkish Forward Guidance

US TSYS
Knock-on effect of Bank of Canada's hawkish policy annc Wed (steady rate but ending QE/moves to reinvestment phase pushes forward rate liftoff from 2H22 to midyear) weighed heavily on short end rates, particularly Eurodlr Sep'22 to Red Jun'23, trading 0.085-0.100 lower at one point. A bit of "tail wags dog" scenario desks quipped, while inflation concerns supported the long end.
  • Heavy volumes (TYZ1>2.2M, USZ>1.4M) as Tsy yield curves bull flattened to new 18 month lows, 30YY tapped 1.9307% low.
  • Active second half players include dealer and prop accts selling 2s-3s, fast and Real$ +5s-10s, Real$ and bank portfolio buying 30s, deal-tied unwinds and curve steepener stop-outs as well. After a large 2s5s steepener Block around midday, a 5s/30s ultra bond flattener block crossed.
  • Post-Note auction support: Tsy futures gapped higher after 2.3bp stop -- decent $61B 5Y note auction (91282CDG3) with 0.157% high yield vs. 1.180% WI; 2.55x bid-to-cover surge vs Sep's 2.37x (lowest since 2008) well over five auction avg: 2.38x. Indirect take-up: 64.78% new 2021 high after 54.3% 2021 Low last month.
  • Equities had been posting modest gains in late trade sold off after Bbg headline noted: SENATE FINANCE CHAIRMAN WYDEN SAYS BILLIONAIRES TAX IS NOT DEAD.
  • The 2-Yr yield is up 4.8bps at 0.4872%, 5-Yr is down 3.9bps at 1.1351%, 10-Yr is down 8.2bps at 1.5256%, and 30-Yr is down 10.2bps at 1.9383%.
BulletMarketsFixed Income Bullets Bank of Canada Market NewsHomepage
BulletMarketsFixed Income Bullets Bank of Canada Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.