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OUTLOOK: 3Y Bond Auction

CANADA
  • Data: Limited to US DOE Inventories (1100ET) for oil price implications, retail sales for Nov tomorrow.
  • Bond issuance: GoC C$3B of 1.25% 3Y (1200ET).
  • Recap: Yesterday’s CPI saw headline as expected, +0.1pp to 4.9% Y/Y, but underlying core measures were stronger, +0.2pps to an average 2.9% Y/Y at the top end of the 1-3% target range and highest since 1991.
  • A hike next week remains ~70% priced. Those already calling for a hike next week continued to do so (Scotiabank an exception going further and seeing 7 hikes in 2022) and whilst it wasn’t strong enough to pull forward those previously set on waiting until March, risks of earlier action were clearly flagged.

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