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30Y Auction: Highest Bid-To-Cover Since April 2020

CANADA
  • Canada sold C$1.25B of its 2.75% 2055 bond at an average yield of 3.691%, slightly below the 3.712% at the Sep 21 marked the highest since 2010.
  • More notably, the bid-to-cover jumped to 2.718 from a five-auction average of 2.454 and the Sep 21 auction of 2.503, marking its highest since April 2020.
  • 30Y GoCs see some relative outperformance on the result, rallying 1bp vs a 1bp cheapening in Tsys over the same period. It pushes the two more closely in line after earlier GoC underperformance, both circa 9bps richer on the day.

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