“We recently unwound our flattening bias because we think the Bank of Canada will slow the pace of its rate hikes after its September meeting, making the flattening positioning less compelling.” — Alexandre Morin
Key takeaways from his comment:
- Central bankers set the record straight, with U.S. Federal Reserve Chair Jerome Powell making it clear that a pivot is not in the cards.
- Risk assets responded negatively to these hawkish comments.
- The Fund’s duration is a little longer than its benchmark; we think most of the curve flattening is behind us.