Free Trial

Front-Loading Of Hikes In BAX Curve

CANADA
  • BAX futures see implied yields move towards previous highs through the whites (although FRA-OIS has tightened 9bps over the same period) as rate hikes continue to be re-priced on the day.
  • There is a much smaller move in late reds and into greens as the curve turns inverted though as the size of BoC hiking cycle is questioned.
  • Stagflation fears appear less pronounced in GoCs though, with 2s10s steepening this week from a low 25bp on Fri to 38bp currently.
  • Geopolitics and US CPI tomorrow likely set the tone in the meantime before Canadian employment on Fri.


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.