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GoC Rally and USDCAD Climb Lose Steam

CANADA
  • FI: GoC yields have resisted some of the renewed rally in Treasuries following the decent 2Y auction but are still down between 6-8bps through 2Y-10Y and 4bps for the 30Y.
  • Can-US yield differentials sit at -6.5bps for 2Y (low end of 10-day range) and -2bps for 10Y (high end).
  • FX: USDCAD trades +0.5% at 1.2799 on continued dollar strength, clearing resistance at 1.2786 (Fibo retracement) which next opens 1.2871 (Mar 15 high).
  • Ahead: Only event of note tomorrow is Macklem’s late Senate appearance, unlikely to add to the steering towards another 50bp hike from yesterday’s House version but it can’t be ruled out.

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