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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CANADA
- 2Y GoC yields are pushing higher and now sit +2.8bps on the day vs +0.6bps for Tsys.
- At 4.239%, 2Y yields are through pre CAD CPI levels and at levels last seen shortly before dovish spillover from US CPI on May 15.
- It sees the Can-US yield differential lift a little further off the week’s lows but it’s still depressed at -70bps as Tuesday’s soft core CPI trends still weigh on BoC rate expectations.
- For reference, it ended last week at -59.5bps having earlier in the week closed at a recent high of -55bps, whilst its recent multi-year low was a short-lived -84bps on Apr 25.
- Domestic macro factors have been limited today as retail sales was met with relatively little reaction after soft details for the full March release were offset by a strong nominal April flash.
- BoC-dated OIS continues to hold around 16bp of cuts for the Jun 5 BoC decision. US spillover aside, the next main local driver is likely Q1 GDP on May 31.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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