Free Trial

Can-US 2Y Differential Holding Push To Tightest Since October

CANADA
  • GoCs underperform Tsys across the curve today, sitting 2-3.5bp cheaper vs Tsys 0-2bp cheaper.
  • In terms of Can-US differentials, the 2Y topped out around -32bps and the 10Y almost at -76bps, before both faded over the past two hours, partly since the 10Y Tsy auction tailed by 0.5bps.
  • Nevertheless, the 2Y at -33bps would mark its highest closes since October, whilst the 10Y at -77bps only marks highs for the week.
  • US factors are likely in the driving seat for the rest of the week, including tomorrow’s US CPI, with the next main local driver the BoC’s BOS/ CSCE reports on Monday.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.