– Daily Commentary BY THE CURVE TEAM –
Daily Insights – Dust Settles
19th of November, 2021
Yields Drift Lower as Dust Settles on Wages Data
- After an initial muted response, the yield curve has flattened a touch in the wake of the wages data on Wednesday.
- The weak headline result supports the RBA’s view that there is no rush to tighten policy.
- However, the improvement in private sector wages will have the RBA on notice
- What it means is that the tension between the RBA’s outlook and the Market’s will continue through to February, resulting in high volatility, which will present investment opportunities.
Canadian Inflation
- Another day and another solid inflation release, this time in Canada
- Core inflation is still running ahead of the Bank of Canada’s target
- Like most central banks, pressure is mounting to take action