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Canada: Pulling Back Of Rate Hike Expectations

STIR
  • BAX futures implied yields are down as much as 5bps in the reds with whites have been limited to 2.5bps, partly retracing yesterday’s 4bp steepening in the BAZ2-BAZ3.
  • The path is similar to that following last week’s BoC/Fed meetings, roughly implying 6 hikes through 2022 before a further ~40bps in 2023.
  • BoC speak later with Gravelle on benchmark reform (1000ET) and then Macklem and Rogers later at the Senate Committee (1500ET).

Source: Bloomberg, MNI

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