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5Y Auction – 1200ET

CANADA
  • Canada sells C$5bn of the 3.5% Sep’29 at 1200ET.
  • Bid-to-covers for 5s have been broadly trending higher ever since Apr’23. The latest was 2.337x in April and a five-auction average of 2.36x, courtesy of March’s 2.465x being the highest since Sep’21.
  • For recent context, the May 2nd 2Y auction saw its highest bid-to-cover since Feb’23 although 5Y yields have pulled circa 10bps since then which could take an edge off the appeal.
  • GoCs have underperformed Tsys since the open, with the 5Y yield +3.5bps on the day and the Can-US 5Y differential currently 1.5bp higher at -81.5bps.

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