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Yields Holding Most Of Rally Ahead Of BoC Presser at 1100ET

CANADA
  • GoC yields are edging higher but are still 19-16bps lower on the day across 2-10Y tenors with equally sizeable declines in BA yields (broadly -17bps) from the Dec’22 through to mid-2024 in a parallel shift lower in the rate path.
  • It more than unwinds a sharp rise in rate expectations after headline CPI beat expectations last week but continues to imply a terminal almost 50bps higher than after the Sep 7 decision, a little under 4.25%.

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