January 10, 2023 20:17 GMT
Yields/Rates Give Back Some Of Recent Underperformance To US
- GoCs have cheapened 1-3.5bps today for 3bp and 5bp outperformance to Tsys at 2Y and 10Y tenors, although a 2Y yield diff at -31bps remains notably narrower than the -40 to -45bps before CAD employment surged on Friday led to some analysts at the more dovish end of the spectrum calling for an extra 25bp hike this month.
- Similarly, BAX futures see minimal change with Macklem’s remarks not touching directly on monetary policy compared to Eurodollars yields climbing up to 8bps in late 2024.
- US CPI on Thu remains firmly in focus with key CAD indicators next week with the BoS/CSCE surveys (Jan 16) and CPI (Jan 17) before the BoC Jan 25.