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10Y Real Yields Extend Fresh Highs Since 2009

CANADA
  • GoCs have continued to underperform Tsys across the curve since the open, in a move that was supported but not driven by the first increase in consumer confidence in five weeks.
  • They see a similar steepening pattern to Tsys though, with yields ranging from +2bp (2Y) to +8.6bps (30Y).
  • The move comes as Canadian real yields continue to push to fresh cycle highs, with the 10Y real of 2.23% extending highs since early 2009.
  • Back at the front end of the curve, the 2Y Can-US yield differential tightens on the day to -18.5bps but remains within the post CAD CPI range of -15 to -22bps.

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