STIR: Effective Fed Funds Rate

• Population +0.6% in Q2 vs +0.8% in same quarter last year, StatsCan says Wed.
• It was still the fastest Q2 population growth since 1972, with 96% of the gain coming from immigration.
• Non-permanent residents grew at the smallest pace since Q1 2023.
• Bank of Canada has focused on implications of population gains for inflation, saying that while new workers boost the economy's potential output there are some signs of short term pressures on housing costs.
• Government recently moved to scale back some short-term student visas amid political pressure over housing costs while saying it's committed to more immigration overall.

• Rate locks (hedges and on spec) are contributing to this morning's selling in Tsys with Oracle and Saudi Aramco issuing US$ debt today. Updates on size and guidance to follow. In the meantime, historical context on potential size of today's larger issuers (full list at 0834ET):
• Oracle issued $5.25B back in February 2023 ($750M 5Y +110, $750M 7Y +130, $1.5B 10Y +155, $2.25B 30Y +203) and $7B in November 2022 ($1B 3Y +120, $1.25B 7Y +185, $2.25B 10Y +205, $2.5B 30Y +255). Oracle is also in the top 20 list of largest debt issuers in a single day with $20B over 6 tranches in March of 2020.
• Saudi Aramco last issued $6B back in July (10Y +105, 30Y +145, 40Y +155) after issuing $8B back in November 2020 ($500M 3Y +110, $1B 5Y +125, $2B 10Y +145, $2.25B 30Y 3.3% yld, $2.25B 50Y 3.65% yld).

SX7E (18th Oct) 135/130ps, bought for 0.25 in 10k.