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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?


To: Michael Friesen who wrote (741)9/30/1998 9:04:00 AM
From: Henry Volquardsen  Respond to of 3536
 
Michael,

The Canadian curve is simply mirroring the shape of the US curve. This is an not uncommon pattern for the US treasury market when we embark on a period of easing. One of the reasons for this is buying of intermediate term treasuries by mortgage back players as they try to stay ahead of the prepayment wave. So this kink may stay around until we get a clear signal that the easing has run its course.

Henry