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Markets Look Through BoC Minutes

CANADA
  • An unsurprisingly mild initial reaction to the BoC minutes with the FOMC looming large.
  • 2Y GoC yields dip less than 0.5bps, keeping to their mild underperformance to Tsys on the day after shifting from a larger outperformance earlier in the session.
  • USDCAD at 1.3554 holds close to session lows, ~15 pips before pre-CPI levels but within yesterday’s range.
  • “Members agreed that if the economy evolves in line with the Bank’s projection, the conditions for rate cuts should materialize over the course of this year. However, there was some diversity of views among Governing Council members about when there would likely be enough evidence that these conditions were in place, and how to weight the risks to the outlook.”

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