Free Trial
CHINA PRESS

Five-Year LPR Seen Lower By Year-end - Times

CHINA RATES

China Repo Rates Rise on Wednesday

AUSTRALIA DATA

ANZ Data Point To Robust Pre-Christmas Spending

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

Capping Off A Week Of Significant Re-Pricing Of Hikes

CANADA
  • BAX yields have seen a further pivot towards an unwinding of inversion through 2023, with front contracts little changed from early this morning (+2bps for the Dec’22) but larger increases thereafter (+6bps Dec’23).
  • Having surged 18bps since strong core CPI inflation on Tuesday, the Dec'22 saw little today to sway it from an aggressive near-term hiking path (OIS still holding around 68bps priced for the Sept 7 BoC), with an ultimately mixed retail sales report not moving the needle.
  • The continued increases further out though see the Dec’23 yield circa 30bps higher since both CPI and after last month’s BoC decision to “front-load” with a surprise 100bp hike. That has helped BAZ2/BAZ3 inversion reverse to an implied 37bps of cuts from a peak of 75bps in late July after the latest FOMC.

132 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 yields have seen a further pivot towards an unwinding of inversion through 2023, with front contracts little changed from early this morning (+2bps for the Dec’22) but larger increases thereafter (+6bps Dec’23).
  • Having surged 18bps since strong core CPI inflation on Tuesday, the Dec'22 saw little today to sway it from an aggressive near-term hiking path (OIS still holding around 68bps priced for the Sept 7 BoC), with an ultimately mixed retail sales report not moving the needle.
  • The continued increases further out though see the Dec’23 yield circa 30bps higher since both CPI and after last month’s BoC decision to “front-load” with a surprise 100bp hike. That has helped BAZ2/BAZ3 inversion reverse to an implied 37bps of cuts from a peak of 75bps in late July after the latest FOMC.