Feb 7, 2023
Bonds Rally After Bank of Canada Publishes Macklem Speech Early
(Bloomberg) -- The prepared text of a speech by Bank of Canada Governor Tiff Macklem briefly appeared on the central bank’s website 12 minutes ahead of its scheduled release on Tuesday.
The speech appeared around 12:18 p.m. New York time and was quickly removed. Canadian government bond yields, which had been rising, began to fall, then lurched downward when the text was republished at 12:30 p.m.
The yield on benchmark two-year Canadian government began to reverse at 12:19 p.m. and was trading at 3.949% as of 1:27 p.m., down about 2.6 basis points from its session high.
“I can confirm that due to an error, the speech text was inadvertently published on the bank’s website 12 minutes early,” Bank of Canada spokesman Paul Badertscher said in an emailed statement.
“It was subsequently removed and then published at the correct time. The bank is reviewing its procedures to ensure it maintains its long-held high standards for publishing content in line with committed embargo times.”
In his first speech since declaring a conditional pause on rate hikes in January, Macklem argued his case for holding interest rates steady to a business audience in Quebec City. He also laid out some of the key metrics the central bank will be watching as it considers whether it will have to increase borrowing costs again.
©2023 Bloomberg L.P.