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2s10s At Fresh Multi-Decade Lows

CANADA
  • GoCs have opened with a bid broadly tracking Tsys as major benchmark yields sit 4.5-6bps lower, with a minor difference being outperformance led by 10s rather than 5s.
  • The move sees 2s10s at fresh multi-decade lows of -133bps.
  • Today sees weekly consumer confidence plus some flash estimates for mfg/wholesale trade in May and government finance statistics for Q1. Much greater focus however is on tomorrow’s CPI plus BoC's Kozicki speaking at the ECB’s Sintra forum.
  • On the ESG side, Bloomberg reports that Canada’s wildfires have burned vegetation at a carbon offset project. More here.

Canada 2s10sSource: Bloomberg

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