Free Trial

Rate Outperformance Continues Ahead Of Final Pre-BoC Data

CANADA
  • Rate outperformance continues today, with BAX futures seeing 4-5 tick gains in late 2023/early 2024 contracts contrary to 8-9 tick declines in Eurodollars.
  • The rally in the front BAH3 is confined to implied yields only being trimmed 2bps whilst OIS continues to show only marginally shy of 25bp priced for Jan 25 for what is currently expected to be the final hike of the cycle.
  • Before then, we have the key BoS/CSCE quarterly surveys (Jan 16) and CPI for Dec (Jan 17) after Nov CPI surprised slightly to the upside.
  • In the meantime, 1H24 inversion continues to hit new highs, with BAZ3/M4 touching -0.93.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.