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FI Treading Water Ahead Of Jobs Report

CANADA
  • GoCs are little changed on the day with yields -0.5bp through 2-10Y tenors and only the very long end lagging, in minor outperformance of Tsys ahead of the labour data at 0830ET. It follows 2s rallying 6.7bps and 10s 4.3bps yesterday.
  • BAX implied yields meanwhile sit 0.5-1bp higher in early trade.
  • Macklem on the labour market at yesterday’s EPR: “Nearly a year later, we can see that job vacancies have indeed fallen significantly, with only a small increase in the unemployment rate. Wage growth, in contrast, has yet to show clear signs of moderation, with most measures around 4% to 5%. As the labour market continues to come into better balance, we expect wage growth will slow. We will be watching wage growth closely for evidence that confirms this rebalancing.”

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