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Canadian Implied Yields Dip Through Red Pack After 50bp Hike

STIR FUTURES
  • BAX futures sell-off slightly in the front whites, unchanged come BAH3 and then firm through the red pack to be as much as up 4.5 ticks since just prior to the rate announcement.
  • It can’t be put onto continuing to be dragged higher (lower yields) by Eurodollars which on balance have seen little change.
  • Relatively small moves considering how much the curve has shifted in the past.
  • Presser ahead in 10mins: https://www.bankofcanada.ca/multimedia/press-conference-monetary-policy-report-april-2022/

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