Free Trial
AUD

Edging Lower, AUD/JPY Sub 91.00

AUDNZD

Pressured Ahead Of $1.10

CHINA PRESS

China's Yuan To Sustain Rally On Capital Inflows

AUSSIE BONDS

On The Front Foot

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

CAD Rates Underperform US With CPI Tomorrow

CANADA
  • BAX futures underperform US rates through to early 2024 on the day, with yields either flat or -1bp out to the Dec’23 before rallying more notably further out.
  • The curve remains heavily inverted, with a peak in the Mar’23 (at a level consistent with a policy rate of 4.25%, 50bp more hikes from current) and then falling 63.5bps to Dec’23.
  • That terminal policy rate tallies with broad analyst consensus but after that there is a wide range of views on 2023 cuts - see here - with Canadian CPI hitting tomorrow.


91 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • BAX futures underperform US rates through to early 2024 on the day, with yields either flat or -1bp out to the Dec’23 before rallying more notably further out.
  • The curve remains heavily inverted, with a peak in the Mar’23 (at a level consistent with a policy rate of 4.25%, 50bp more hikes from current) and then falling 63.5bps to Dec’23.
  • That terminal policy rate tallies with broad analyst consensus but after that there is a wide range of views on 2023 cuts - see here - with Canadian CPI hitting tomorrow.