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Outlook and Recap

CANADA
  • Today's focus is on BoC’s Macklem speaking at 1200ET with text and Q&A (plus a further media press conference at 1330ET).
  • The topic is “The role of productivity in fostering non-inflationary growth” having noted at last week’s testimony that the rate path will hinge on expected productivity gains.
  • Recap: 2Y GOC yields reached parity with US Tsys yesterday after the spread narrowed 5bps, leaving the entire yield curve at or below USTs and removing a previously positive rate differential.
  • Alberta announced plans to lift Omicron-linked restrictions, starting with the vaccine passport, and Quebec plans to lift most restrictions by mid-March, but the ‘Freedom Convoy’ protests continue.
  • A second U.S.-Canada border crossing has been disrupted, although police late yesterday managed to establish limited traffic on the Ambassador Bridge, linking Windsor, Ontario to Detroit and a key connection for the auto industry on both sides of the border.

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