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2s10s Push New Cycle Lows

CANADA
  • The slide lower in the Can-US 2YY differential is kept near recent lows of -28bps having been -23bp heading into the FOMC and +5-10bps pre-US CPI.
  • Despite the widening gap in front-end yields, the GoC curve remains more heavily inverted, with 2s10s at new cycle lows of -75-76bps in yet new lows since 1990 vs -52bps in Tsys.

Canada 2s10s vs Tsys and spread (green)Source: Bloomberg

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