CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Twist Flattening As Rate Expectations Firm

CANADA
  • GoCs have twist flattened today, in part with what’s been seen in the US but also on commentary from BOC Governor Macklem, as renewed hiking expectations lift short end yields with the haven play driving a rally further out.
  • In answer to a specific question, Macklem didn’t rule out the option of a 50bp hike if the economic outlook warranted it, similar to Powell both yesterday and today, but wouldn’t be drawn further.
  • 2YY up 2bps and 10Yy down 3bps sees a further flattening in 2s10s to 30bps, the flattest since Sep-2020 but still 50bps above the sustained lows of an inverted -20bps in Aug-Sep 2019.
  • QT was confirmed to be passive full roll off but with no information on timing just yet - https://marketnews.com/boc-s-early-qt-plans-no-timing-just-yet
  • USDCAD sits 0.4% higher today in a combination of broader USD strength and oil softening from extremely high levels. This sees it nearly claws back yesterday's delayed decline after the BOC hiked 25bps to 0.5%.
BulletMarketsFixed Income BulletsForeign Exchange BulletsHomepage

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.