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5Y Auction and PSAC Wage Talks In Focus

CANADA
  • GoC yields are holding 1-2bps higher on the day through 2-10Y tenors (30Y outperforming with near unchanged) having seen a limited 1-2bp intraday rally from pre-data levels.
  • Still to come, the 5Y GoC auction for $5B of the new 3.5% Sep-2028.
  • With the BoC closely watching wage growth, we also keep an eye on any further talks after the PSAC went ahead with a strike today after declining a 9% wage increase over three years. It covers 155k federal workers including 35k at the Canada Revenue Agency ahead of the May 1 deadline for personal income taxes, whilst a latest headline from the Farmers' Group is that the strike could affect grain shipments.

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