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Macklem Push Back On Rate Cuts Doesn't Alter BAX Inversion

CANADA
  • 2Y GoC yields slightly higher on the BoC presser, +5.1bps since the rate announcement at 1000ET (+3.1bps for Treasuries over the same period) having gone into the conference +4.3bps.
  • Push back on rate cut pricing (implied expectations in market that going to be cutting later in the year doesn't look like the most likely scenario to us) doesn’t materially changed BAX spreads: BAM3/Z3 -0.40 from -0.415 after the announcement, back little changed from yesterday’s close.

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