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Growing Rally In Late 2023 Rates

CANADA
  • BAX near-term contracts little changed on the day but longer-term contracts richer, led by the Dec23 up 6.5 ticks.
  • The combination sees the curve maintain a steep rate path through 2022 but thereafter sees growing inversion with almost 25bps of cuts over the year from the Jun23 from a roughly implied peak overnight rate around 3%.

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