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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
- GoCs have seen unusually little spillover from the sell-off in Treasuries on today’s flash PMI beat and jobless claims showing another week of relative resilience.
- The difference is starkest at the front end where 2Y GoC yields are +1.3bps vs +6.4bps for Tsys. Further, compared to levels shortly before Tuesday’s CAD CPI, 2Y GoC yields are 1bp lower vs +11bps for Tsys.
- It sees the Can-US 2Y differential drop another 5bps on the day to -73bps, a sharp turnaround from last week’s high of -55bps and getting back towards historical extremes. Its recent low at the close was a short-lived -84bps on Apr 25.
- BoC-dated OIS remains in the 15-16bp region for June cuts seen after CPI, along with roughly 60bps for 2024 as a whole vs 35bps for the Fed.
- A reluctance to have policy diverge too far from the US saw HSBC earlier revise their rate call with a first BoC cut in July (from June) and 125bp of total cuts by end-2025 (from 200bps).
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.
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