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10Y Auction Sees Bounce In Bid-to-Cover Despite Yields Sliding Beforehand On US CPI

CANADA
  • Canada sold C$5B of the new 3.25% Dec’34 at an average yield of 3.403%.
  • The bid-to-cover of 2.317x bounced back after the 2.065x last month was the lowest since 2022. It compares with a five-auction average of 2.28x.
  • Can-US 10Y yield differentials are still +3bp on the day at -78.3bps courtesy of the slide in US yields on the soft US CPI report (GoC yields have still been dragged 8bps lower on the day).

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