CANADA: USDCAD Unwinds Day’s Gains With Risk-On Patch
Apr-27 16:52
- The recent patch of risk-on with equities moving higher sees USDCAD fall more than 50 pips to 1.2798, erasing gains for the day at -0.2%.
- Little change in rates over that period, although front-end GoC yields have resisted a minor rally in Tsys, helping tighten the small negative 2Y yield differential.
- Scheduled potential drivers: BoC's Macklem at the Senate later at 1830ET with eyes then on data with the Q1 flash for US GDP tomorrow before Canadian GDP for Feb on Fri.
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OPTIONS: Larger FX Option Pipeline
Mar-28 16:47
- EUR/USD: Mar30 $1.1000(E2.5bln), $1.1050-60(E1.4bln), $1.1100(E1.2bln), $1.1150-55(E1.0bln); Mar31 $1.1000(E2.9bln), $1.1100(E1.4bln)
- AUD/USD: Mar31 $0.7500(A$1.3bln)
- USD/CAD: Apr01 C$1.2660-80($1.1bln)
OPTIONS: Bobl Put Fly And Bor Call Condor Buying In Size
Mar-28 16:47
Monday's Europe rates / bond options flow included:
- RXK2 157/156ps, sold at 34 in 3.4k
- RXM2 162/164 call spread bought for 33.5/34 in 5k
- OEM2 128.50/127.50/126.50p fly bought for 14 and 14.5 in 40k
- OEK2 129.50/130.50cs, bought for 22 in 5.2k
- ERU2 99.625/99.875/100.00/100.25 1x1x1x0.5 call condor, bought for 6 in 15k
- ERU2 100.25/100.375/100.50/100.625 call condor bought for 3 in 10k
CANADA: Emissions reduction plan to be unveiled tomorrow
Mar-28 16:26
- CTV reported earlier that Guilbeault will unveil details of the federal govt’s plan tomorrow, mapping out specific actions to meet its targets.
- Passed in June, the Net-Zero Accountability Act commits Canada to net-zero GHG emissions by 2050 and to reduce emissions by 40-45% below 2005 levels by 2030.
- Canada last week issued its first green bond, with C$5B of a 2.25% 7.5Y bond with a bid-to-cover north of 2.2 despite having cut the spread over the Jun 29s from 2.5bps to 0.5bps beforehand.
