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10Y Auction: Marginally Lower Bid-to-Cover

CANADA
  • Canada sells C$4B of the 3.25% Dec-2033 at an average yield of 3.550%, welcome relief from the issuer's perspective after two auctions with yields north of 4%.
  • Bid-to-cover of 2.291x vs five-auction average of 2.37x, technically the lowest since May but only just below Sep and Oct levels of 2.303/2.305.
  • Little immediate reaction in GoCs, with 10s tracking Tsys with a ~0.5bp move richer post auction and still outperforming on the day with yields -3.4bps lower vs -2.1bps for Tsys.

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