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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
- GoCs sit between 9-11.5bp lower on the day, with declines led by the belly.
- The move has closely followed the rally in Treasuries after a mostly in line core CPI reading included some deceleration in rental inflation and, a larger driver of price action, retail sales saw a large miss.
- Can-US yield differentials have actually dipped slightly (-0.5bp for 2s, -2bps for 10s) after a strong run higher over the past week to their highest in over a month. They currently sit at -55.5bps and -78bps respectively.
- TD yesterday: " We stress that even with the ongoing deluge of US supply, it is hard to justify Canada-US 10 and 30-year spreads at current levels barring a material shift in relative neutral rates. Near-term dynamics support trading tighter ranges however (-80bp looks like a good opportunity to reduce risk on short Canada/long US 10-year positions), as markets look prone to focussing on downside surprises in Canada.”
- BoC-dated OIS has shifted back to 50/50 odds of a June cut from closer to 10bp yesterday, whilst CORRA futures show 68bp of cuts across 2024 vs 60bp pre CPI/retail sales.
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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