Canadian Swaps Market Sees 75 Basis Points BoC Easing by December; 2-Year Yield at 3.291%, 100 Basis Points by 2024

The Canadian swaps market anticipates a reduction of 75 basis points in the Bank of Canada's (BoC) interest rates by December, an increase from the previous expectation of 72 basis points following the recent inflation data. Additionally, Canada's 2-year yield has decreased by 3.8 basis points to 3.291%. In the U.S., traders are also adjusting their expectations for Federal Reserve rate cuts, projecting a total easing of 100 basis points by 2024, ahead of forthcoming jobs data. This shift in market sentiment reflects broader concerns about economic conditions, highlighted by potential revisions that could impact one million U.S. jobs.