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2Y Yields Clear 4% For First Time Since 2007

CANADA
  • Front end GoCs trading roughly in line with Tsys sees the 2YY exceed 4% for the first time since 2007, currently +3.7bps at 4.022%, building on yesterday’s hawkish steer from BoC’s Macklem.
  • 10YY are +4.5bp but remain notably off cycle highs, with 2s10s still heavily inverted at -67bps, close to cycle lows of -76bps last week closer to when US yields peaked, having regularly hit fresh post-1990 lows since August.

Can 2YY (green), 10YY (yellow) and 2s10s (white). 2s10s shows mid and not ask price as in textSource: Bloomberg

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