New beginnings

Ian is on the hunt for a new co-host, and is joined this week by Nick Exarhos to discuss a host of themes that matter right now for the bond market. The duo begin their discussion on what quantitative tightening (QT) would look like from the Bank of Canada, and the key differences we should expect relative to the Fed. Nick discusses the impact of fiscal drag in the United States on the growth outlook, and questions whether excess savings is enough offset the slowdown. Ian spends some time talking about the upcoming BoC MPR and why he doesn’t believe the Bank will hike rates this month. The pair discuss the evolution of the curve and have a friendly disagreement on the level of provincial spreads.