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Rates Sold Post ECB But Outperform US

CANADA
  • Having largely retraced the BoE move earlier, the reaction in GoCs to Lagarde’s conference has proved stickier. 2YY are 1bp higher whilst belly to long end yields are up 3-4bps.
  • In 10Y space, the +4.0bps outperforms the +5.4bps seen in Tsys.
  • Short-term rates are little changed on the day until the late reds onwards, leaving the BAX curve close to where it was after the BoC/Fed meetings last week, i.e. around 6 hikes in 2022 and then ~45bps in 2023.

Source: Bloomberg/MNI

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