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2Y Auction Ahead After Recent Bid-To-Cover Swings

CANADA
  • Canada sells C$6.5bn of the 4% May’26 at 1200ET.
  • It follows a five-auction average bid-to-cover of 2.38x but the last two swung from a somewhat high 2.6x in early Feb to a particularly low 2.16x in late Feb.
  • 2Y GoC yields trade 3.5bps higher on the day as underperformance to Tsys has widened again. The Can-US yield differential sits at -45bps (+3bp on the day).

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