March 20, 2023 15:23 GMT
Front-End Rates Outperformance To US Ahead Of 5Y Supply
- CAD fixed income sees some growing outperformance to the US at the front end, be it in rates with BAX futures cheapening only 7-9 ticks in the white pack vs up to 17 ticks for SOFR or 2Y GoC yields +4.0bps vs +8.5bps for Tsys, the latter after last week's trend underperformance.
- Ahead, Canada continues its recent run of issuance with another C$3.5B of the 3.5% 5Y at 1200ET after last week’s 2Y and 10Y auctions.
- Regional banking spillover aside, local focus will be on tomorrow’s CPI Feb print, with base effects starting to see more significant declines in Y/Y measures of inflation.