Free Trial

Significant Bear Flattening And USDCAD Unwinds CPI Boost

CANADA
  • Moves mainly in FI, with a very large bear flattening as 2Y GoC yield surge another 9bps for 17bp after the earlier jolt higher from US CPI, vs the 10Y yield +7bps on the day.
  • 2s5s and 2s10s both extend inversion to new recent lows at -16bps and -14bps respectively, moving back close to pre-pandemic 2019 lows when looking through the Mar'20 volatility.
  • FX: After whipsawing, USDCAD offsets the boost from the US CPI beat to sit back at 1.2991 for -0.25% on the day but now with CAD unsurprisingly outperforming.

Source: Bloomberg

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.