The main events of the week for the US and Canada are coming up today.
The US CPI report is first at 8:30 a.m. ET (1330 GMT) and comes with the market pricing in an 85% chance of a Fed cut next week and 82 bps in easing in 2025. I wrote before – full view of the report here.
After that, the focus will shift to the 9:45 a.m. ET decision on rates from the Bank of Canada. The market is pricing in a 90% chance of a 50 basis point cut as the loonie teeters near a four-year low. This is a preview of BOC decision. Macklem will hold a press conference at 10:30 a.m. ET.
The final event comes at 1pm ET with the 10-year Treasury auction. Yields have ticked 2-3 bps across the curve so far today. For more, see the economic calendar.
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