CAD: GBP/CAD Through Support on Jobs Data

• Fast two-way as Treasury futures extend lows before gapping higher after lower than expected PPI inflation data and down-revisions to prior.
• Currently, the Dec'25 10Y trades +2 at 113-13 (yld 4.0645 -.0230) vs. 113-16 high -- Initial resistance above at 113-21+ High Sep 5.
• Curves steeper: 2s10s +0.402 at 53.111, 5s30s +0.860 at 112.185.
• Soft PPI heads enough to re-trigger USD weakness, erasing the entirety of the morning's tepid gains on Poland/Russia headlines. GBP/USD's show back above 1.3550 tops out at 1.3563, still well short of yesterday's highs into 1.3590.

• MNI: US AUG FINAL DEMAND PPI -0.1%, EX FOOD, ENERGY -0.1%
• US AUG FINAL DEMAND PPI EX FOOD, ENERGY, TRADE SERVICES +0.3%
• US AUG FINAL DEMAND PPI Y/Y +2.6%, EX FOOD, ENERGY Y/Y +2.8%
• US AUG PPI: FOOD +0.1%; ENERGY -0.4%
• US AUG PPI: GOODS +0.1%; SERVICES -0.2%; TRADE SERVICES -1.7%

Little to really add when it comes to FI-specific commentary, although another fresh all-time high for S&P 500 e-minis has limited rallies/applied pressure at stages over the past few hours.

• The previously covered block buy in TU futures has supported Tsys over the last hour or so, with that curve bull steepening on the day but back from highs (yields flat to 1bp lower).
• Meanwhile, Bunds (yields 1-2 bp higher) and gilts (yields 1.5-3.5bp higher) bear flatten.
• U.S. PPI data due shortly, presenting the major macro calendar event for the session.
• PPI is expected to slow, albeit with the major Y/Y readings still forecast above 3%. There will also be some focus on the revisions. See our recent run of bullets for more colour.