Free Trial

Can-US ​Yield Differential Blows Out Further Post FOMC

CANADA
  • Significant outperformance of GoCs to Tsys, especially at the front-end (2YY +1bp vs +5.5bps for Tsys), sees the Can-US yield differential widen further to -25bp on the implied perception of differing extents of Fed and BoC hiking cycles.
  • This pushes a new low since Aug'19, yet despite a lower 2Y rate, the GoC curve remains more heavily inverted, with 2s10s at a yet new cycle low of -73bp (fresh post-1990 lows) vs -51bps for Tsys.

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.