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Front BAX Rates Resilient Ahead Of Macklem, Powell Tomorrow

CANADA
  • BAX futures sit 0.02-0.035 richer through 2023 contracts before up to double digit rallies into 2024 in similar moves to US rates space.
  • It sees peak yields in the Mar’23 little changed from Thursday’s close prior to the mixed US payrolls and strong Canadian employment reports but with Dec’23 yields now 8bps lower.
  • Inversion therefore builds, with BAH3/Z3 -0.625 and BAZ3/M4 -0.78.
  • Fed/BoC speak highlights tomorrow’s docket, first with Macklem and then Powell to speak on Riksbank panels.


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