Free Trial

Growing GoC Cheapening On Beaudry Remarks

CANADA
  • Fixed income has seen an extending sell-off in response to BoC Dep Gov Beaudry’s prepared remarks.
  • It’s taken a while to build but 2Y GoC yields are now +3.5bp since the release for -3.4bps on the day. It sees 2s trading back in line with Tsys -3.1bps to preserve the slightly positive Can-US spread at +1.5bps.
  • USDCAD though almost completely looks through them having been relatively nonplussed yesterday considering the extent of the hawkish guidance.
  • MNI: BOC 'FOCUSED ON TAKING THE STEPS NEEDED' TO REGAIN 2% CPI
  • MNI: BOC'S BEAUDRY SEES RISK OF NEW HIGHER INTEREST-RATE ERA
  • Bloomberg headlines:
  • *DATA SINCE APRIL 'TIPPED' BALANCE FOR CANADA JUNE HIKE - bbg
  • *CORE INFLATION LOST DOWNWARD MOMENTUM, BANK OF CANADA SAYS - bbg
  • *BANK OF CANADA NOTES LIKELY UPSIDE RISK TO NEUTRAL RATE - bbg

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.