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2Y Auction – Another High Bid-to-Cover

CANADA
  • Canada sells C$4.75B of the new 3.5% Aug 2025 at an average yield of 3.665%.
  • The b/c of 2.75x follows 2.33x prior and a prior five-auction average of 2.449x, biased higher by the jump to 2.82x in Feb.
  • Snap reaction doesn’t see an impact in GoCs. Still holding sizeable underperformance to Tsys on the day at the front end, with 2YY -3.3bps vs -7.7bps.

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