Free Trial
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.
CANADA
- CAD rates outperform the US today but with little by way of headline drivers for the divergence.
- 3-mth CORRA futures are up to 2 ticks higher for 2024 contracts and 4 ticks higher for 2025 contracts in another step higher since last week’s dovish BoC decision (SOFR futures little changed today).
- The Dec’24 has seen the greatest change since then, with implied rates down some 14bps to leave a cumulative 71bp of cuts from the Jun’24 vs 61bp pre-BoC.
- That’s complicated by the cut already seen in July but with BoC-dated OIS showing a little over 50bps of cuts left for 2024.
- Analysts are split over when a possible pause could be in the three outstanding meetings (Sep, Oct & Dec) whilst OIS shows circa 20bp of cuts priced for Sep.
- As for overnight markets, pressures have dissipated in recent sessions (CORRA spread to o/n policy rate down to 2bps on Fri vs 5bps a week ahead of the BoC) but it’s requiring ongoing overnight repo operations, including C$12bn today. Rogers talked on the switch to t+1 settlements and ongoing basis trade demand as a factor for renewed pressure).
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok