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CAD Rates Hold Just Shy Of One Further BoC Hike By Year-End

CANADA
  • CAD rates have underperformed their US counterparts today, although from a curve sense see a similar story as cuts build slightly after the prior two session closed with the least cuts priced since Oct’22.
  • The front Sep’23 trades +0.005 building to +0.02 for the most heavily traded Jun’24, with BAU3/Z4 widening slightly from -57.5bps to -59bps.
  • OIS suggests nearer-term BoC expectations are near unchanged on the day, with +10bp for the Sep 6 decision building to a cumulative +21.5bp by year-end.

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