BOC SAYS DOESN'T NEED TO ALTER PATH OF QT RIGHT NOW

this is a test, please ignore

MNI BRIEF: Text of Bank Of Canada Interest-Rate Decision

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

New Home Sales Activity And Prices Continue To Cool

US EIA: CRUDE OIL STOCKS EX SPR -3.74M TO 436.5M JUL 19 WK

Services PMI Gains Continue To Diverge From Soft Manufacturing

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GoCs Rally With Treasuries Ahead Of BoC Decision

CANADA
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets Bank of Canada Market News
  • Treasuries are leading front GoC yields lower with the BoC decision an hour away.
  • As is now the norm, the twin statements for the rate decision and press conference will be released at 0945ET along with the Monetary Policy Report, before the press conference itself at 1030ET.
  • 2Y GoC yields are 6bps lower on the day with curve steepening, 2s10s at -29bp (+2.5bp).
  • The Can-US 2Y differential at -76bps is 2.5bp higher on the day courtesy of the new US 2Y benchmark. It’s off extremes, with lows of circa -90bps in the days after the BoC’s first cut in June, although remains depressed historically.
  • BoC-dated OIS has ~22bp of cuts priced for today’s decision whilst we feel the cumulative ~38bp of cuts for the September meeting could be vulnerable today if the Bank gives any indication of a temporary pause.
  • Preview: https://roar-assets-auto.rbl.ms/files/65376/BOCPreviewJul2024.pdf

141 words

To read the full story

Close

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.
  • Treasuries are leading front GoC yields lower with the BoC decision an hour away.
  • As is now the norm, the twin statements for the rate decision and press conference will be released at 0945ET along with the Monetary Policy Report, before the press conference itself at 1030ET.
  • 2Y GoC yields are 6bps lower on the day with curve steepening, 2s10s at -29bp (+2.5bp).
  • The Can-US 2Y differential at -76bps is 2.5bp higher on the day courtesy of the new US 2Y benchmark. It’s off extremes, with lows of circa -90bps in the days after the BoC’s first cut in June, although remains depressed historically.
  • BoC-dated OIS has ~22bp of cuts priced for today’s decision whilst we feel the cumulative ~38bp of cuts for the September meeting could be vulnerable today if the Bank gives any indication of a temporary pause.
  • Preview: https://roar-assets-auto.rbl.ms/files/65376/BOCPreviewJul2024.pdf