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Muted initial reaction to the BoC’s FSR

CANADA
  • GoCs rally marginally since the release with 2-10Y yields -0.3bps but still +7-7.5bps on the day.
  • They fade the 1-1.5bps rally in Tsys after slightly softer than expected existing home sales, still up 6-6.5bps after hawkish Fedspeak from Logan.
  • USDCAD retreats 15 pips off session highs at 1.3484, remains firmly within yesterday’s range. With CAD only conceding 0.2% to the USD today, it leads other G10 FX.
  • Media Q&A at 1600ET but Gov. Macklem tends not to focus on mon pol.

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