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OUTLOOK: Housing Starts, Bill Issuance

CANADA
  • Data: Housing starts for Dec (0815ET) with consensus for a dip to 270k after jumping to 301k in Nov.
  • Bill issuance: C$6B of 98-day (1030ET) plus C$2.25B of 168-day and C$2.25B of 350-day (1040ET).
  • Recap: Yesterday’s BOS showed an intensification in inflationary pressures from supply side issues including labor shortages.
  • Some analysts saw this as expected (CIBC have the BoC unch this month but hiking no later than April, recommending Jan/Mar OIS steepener) whilst others saw greater odds of a Jan hike (TD see Jan as a coin-toss at a minimum, Laurentian see Jan liftoff as appropriate). All likely to be reviewed after tomorrow's CPI for Dec.

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