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CAD Rates Reverse Friday’s Build In Rate Cut Expectations

CANADA
  • 3M CORRA futures have bear steepened today, trading little changed for remaining 2023 contracts building to 6bp cheaper for the Dec’24.
  • BAZ3/Z4 lifts 5.5bps to -56bps, only unwinding Friday’s drop and still at levels last seen in early September.
  • The steepening is a slight exaggeration of the move seen in US rates, amidst a light local data docket which has only seen a small increase in weekly consumer confidence.
  • Macklem and Rogers appear at the House finance committee with an opening statement at 1530ET. Whilst worth being aware of, it would be a surprise if market moving as there hasn’t been any significant data since last week’s BoC decision which included the MPR and its press conference. Monthly GDP for Aug/Sept advance lands tomorrow.

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