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Slide In BAX Yields Pauses

CANADA
  • BAX implied yields pull back slightly from the day’s slide but still see front-dated contracts unwinding yesterday’s rise (BAZ2 -5.5bps) and larger moves further out in 2023, with BAZ3 down some 11bps for the lowest since Apr 28/29 and driving modest inversion from mid-2023 in the process.
  • Global growth concerns appear in full focus rather than any local drivers. Earlier, industrial product price inflation slowed heavily in April but likely only temporarily and with retailers still having to absorb some of the surging cost pressures of recent months, adding to very strong CPI inflation yesterday.

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