Suddenly Hawkish Bank of Canada Ends QE, Moves Rate Hikes Forward. 1-Year and 2-Year Yields Spike

Discussion in 'Economics' started by ipatent, Oct 28, 2021.

  1. ipatent

    ipatent

    Suddenly Hawkish Bank of Canada Ends QE, Moves Rate Hikes Forward. 1-Year and 2-Year Yields Spike

    Following its policy meeting today, the Bank of Canada announced that it would end QE outright beginning November 1. And – unexpected by economists – it moved rate hikes closer, with April 2022 now showing up as the expected date of a liftoff, up from the second half in 2022, with four rate hikes expected next year.

    In response, the Canada 2-year yield spiked by 21 basis points, to 1.08%, having more than doubled over the past four weeks. The 1-year yield spiked by 19 basis points today to 0.72%, having nearly tripled over the past five weeks:

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  2. good move
     
    murray t turtle likes this.