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Front End Rates Still Pinned By CPI Beat

CANADA
  • Front end GoC yields remain resilient to the rally in Treasuries, with the 2Y yield dipping from a high of 2.585% (new high since Sep-2008) but still up 6bps on the day compared to Treasuries down -2bps.
  • There’s a similar story in BAX futures as well, with double digit declines in the white and red packs compared to flattening from the red pack onwards for Eurodollars.
  • Today’s CPI beat helps drive this with potentially little change until BoC Governor Macklem and Senior Dep Gov Rogers speak tomorrow to the House finance committee from 1100-1300ET.

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