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Unusually Steady Session For BAX

CANADA
  • BAX futures have seen an unusually steady session so far today with low volumes and little change on BoC Dep Gov Gravelle’s remarks, which focused initially on QT end timing whilst also pushing back on 'premature' talk of rate normalisation.
  • They trade just 2-2.5 ticks cheaper across the curve, with the BAM3/Z3 time spread of -0.385 still implying 2023 cuts but currently set for the lowest close in absolute terms in just over a week.
  • US developments, be it banking, data or otherwise, are a likely driver tomorrow before Friday sees a local potential driver from monthly GDP.

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