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2Y Auction: Bid-to-Cover In Line, GoC Underperformance Holds

CANADA
  • Canada sells $6.5B of the 4.5% Feb-26 at an average yield of 3.884%.
  • The bid-to-cover of 2.383x is up from 2.27x in December but close to the five-auction average of 2.40x.
  • This auction is C$1B larger than prior taps, following higher borrowing requirements as outlined in the Fall Economic Statement.
  • 2Y GoCs track Treasuries since the results, but see sizeable underperformance on the day with the Can-US differential narrowing to -28.5bps for its highest since October.

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