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Yield Climb Trimmed On Macklem, More Limited Reaction in FX

CANADA
  • BAX implied yields dip 3-4bps through 2H23-1Q24 contracts on Macklem’s prepared remarks, trimming earlier increases to 3bps for the Dec’23 and 5bps through 2024 contracts on the day (but 1H24 implied yields still 50bps above post Jan 25 decision levels).
  • USDCAD increases ~20 pips but remains within earlier ranges, hovering close to 1.345.

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