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CIBC FICC Strategy Auction Preview: 4th of 5 parts, Macro Considerations
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CIBC FICC Strategy Auction Preview: 4th of 5 parts, Macro Considerations
Jul 2, 2024 1:39 PM

04:19 PM EDT, 07/02/2024 (MT Newswires) -- Compared to policy expectations, CIBC said, the level of CAD 5yr yields looks 'about right'. Over the balance of 2024 CIBC expects additional Bank of Canada easing to take 5s to 3.0%, which would represent the lowest level of belly yields over the forecast horizon to 2026. CIBC added: "A key source of richening relative to the U.S. has been an outperformance of term premiums. In a world that is now obsessed with debts and deficits, Canadian term premia should rebuild more slowly. We do not expect a material cheapening in CA/US 5yrs until 2025."

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