Notes from the Desk: US Treasuries – The Trifecta of Pain The last few days have not been kind to holders of US treasuries, with yields rising and the curve steepening. One. The first surprise was the Bank of Japan (BoJ) making an unexpected change to Yield Curve Control (YCC), raising the top end […]
Notes From the Desk: FOMC Meeting – A Tweak Away As widely expected, the Federal Reserve (Fed) hiked 25bps, bringing the fed funds into a range of 5.25-5.5%. The press release was almost a carbon copy of the one issued at the last meeting, suggesting that the committee’s views have not materially changed. During […]
Notes From the Desk: Two for One Special – Bank of Canada and US CPI Bank of Canada Rate Announcement. The Bank of Canada (BoC) raised the overnight by 25 bps, bringing it to 5%. The Bank pointed to evidence of persistence in excess demand and core inflation as the rationale for the […]
Notes From the Desk: Today’s Employment Data – Sealing the Deal Canadian and US employment data for June was released this morning, confirming the resiliency of labour markets despite higher interest rates. By the numbers. Canada 59.9k jobs created (20k expected). Strong mix, with 109.6k full-time jobs, gained while 49.7k part-time positions were […]
Notes From The Desk: FOMC Meeting – A Hawkish Pause The FOMC chose to exercise patience today by holding rates steady but raised the terminal rate’s median projection to 5.6%, indicating the need for 50bps of hikes in the coming months. Connecting the dots. The infamous dot plot revealed the following projections. Terminal […]