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Rates Flat To Firmer Before Employment

CANADA
  • GoCs have seen a modest bull flattening after open, with 2YY little changed from yesterday’s close at 1.294% as the rest of the curve has rallied 1.2-2.3bps.
  • Little change on the day for BAX futures, with whites down 0.5-1 ticks and reds flat to up 0.5 ticks ahead of January employment.
  • Omicron disruption is expected to have weighed on jobs. A broadly as expected report should quickly see attention from a data point of view shift to Jan CPI on Feb 16 before the BOC liftoff is currently priced for March 2.

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