Free Trial
NZD

Gains As Equity Rally Continues

USDCAD TECHS

Bear Threat Still Present

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Can-US Yield Differentials Nudge Off Cycle Lows

CANADA
  • GoCs see a smaller intraday rally than Treasuries, minimising further outperformance to Tsys with 2Y GoCs currently +1.5bps vs Tsys +2bps.
  • It does little to change the sharp decline in Can-US yield differentials though, most notably the 2Y now -45bps (lows of circa -50bp shortly after open and lowest since Jun'19) from +5-10bps prior to US CPI strength two weeks ago, adding upside to USDCAD momentum in the process.
  • This widening could be maintained in the near-term as aside from today’s 5Y auction, the next idiosyncratic driver is likely GDP for July on Thursday.
93 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • GoCs see a smaller intraday rally than Treasuries, minimising further outperformance to Tsys with 2Y GoCs currently +1.5bps vs Tsys +2bps.
  • It does little to change the sharp decline in Can-US yield differentials though, most notably the 2Y now -45bps (lows of circa -50bp shortly after open and lowest since Jun'19) from +5-10bps prior to US CPI strength two weeks ago, adding upside to USDCAD momentum in the process.
  • This widening could be maintained in the near-term as aside from today’s 5Y auction, the next idiosyncratic driver is likely GDP for July on Thursday.