Core Viewpoint - The likelihood of a rate cut by the Bank of Canada in September has decreased to 19%, down from 22% prior to the policy decision announcement [1] Group 1 - The current market expectations for a rate cut reflect a slight decline in confidence among investors [1]

Core Viewpoint - The article discusses the launch of the "Northbound Swap Connect" initiative, which aims to enhance collaboration between the mainland and Hong Kong financial derivative markets by introducing new features for interest rate swaps (IRS) trading and centralized clearing, effective June 30, 2025 [1]. Group 1: Northbound Swap Connect - The "Northbound Swap Connect" will support IRS contracts with a maximum remaining term of 30 years, including FR007 and Shibor_3M interest rate swaps, along with features for IMM contracts, historical start date contracts, and contract compression [1]. - Bloomberg has initiated support for the first day of trading for long-term interest rate swaps under this new framework, enhancing access for global investors to manage interest rate risks effectively [1][2]. Group 2: Bloomberg's Role - Bloomberg's IRS trading portal (BBTI) will now support a variety of financial instruments in the mainland interbank derivative market, including 7-day repos and 3-month Shibor, as part of its commitment to seamless access to China's onshore financial markets [1][2]. - The expansion of the "Swap Connect" solution is based on an upgrade in May 2024, which allows trading of IRS contracts aligned with international money market (IMM) settlement dates, catering to the growing demand for diversified and flexible risk management tools among institutional investors [2]. Group 3: Trading Workflow - Authorized Bloomberg terminal users can initiate requests for quotes (RFQ) from a list of approved onshore dealers by the People's Bank of China (PBOC), allowing for competitive pricing and execution information [5].