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Hesitant Front End Rates

CANADA
  • BAX futures implied yields stubbornly sit little changed on the day through the white pack despite a recent move higher in their Eurodollars equivalent (10-11bps).
  • Yields are up more strongly further out in the late reds/front greens, but the steadier front end follows Dep Gov Gravelle yesterday largely keeping to past BOC commentary (will be as “forceful as needed”, going to neutral and then whether goes above or pauses will depend on evolving outlook).
  • The next major domestic trigger comes from CPI for April on Wed.

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