Free Trial

US CPI-Induced Rate Cuts Trimmed

CANADA
  • 3M CORRA futures show further hikes from current levels as being priced out, with the Dec’23 implied yield of 5.04% in line with the 5.04% O/N seen in recent sessions.
  • Larger moves have been seen further out the curve, unwinding about half of yesterday’s US CPI-induced jump in 2024 cut expectations with BAZ3/Z4 at -75bps, from -84bps yesterday and -65bps with Friday’s close.
  • US factors have been a major driver this week and likely will continue to be. Local factors see a prelude with industrial prices on Friday before a particularly important start to next week with CAD CPI and the government's Fall Economic Update on Monday before BoC's Macklem speaking on Tuesday.

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.