Free Trial

CAD Rates Least Inverted Since Aug 2022

CANADA
  • 3M CORRA futures implied yields have climbed 3.5-7.5bps since the CAD CPI report, with the front U3 yield now +4.5bp on the day and with the largest increase +12bps for the Dec’24.
  • It sees a significant further tightening in the U3/Z4 spread to -32bps for its least inverted now since Aug’22.
  • The post-data react has likely been limited by the cheapening seen into the release plus the fact there is still one more CPI report to land before the Oct 25 decision. Nevertheless, this appears to be a report the Bank would clearly not wanted to have seen having just returned to the sidelines after hiking a combined 50bps through June and July.

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.