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Front GoC Yields Clear Resistance For Fresh Cycle Highs

CANADA
  • GoCs open and push to fresh cycle highs, clearing prior resistance at a loose triple top just shy of 4.34% (topping out with 4.338 on Feb 27).
  • The +3.5bp increase to 4.352% tracks Tsys, which earlier touched fresh cycle highs of 5.08% (currently 5.04%), with little change to the recent widening in the gulf between the two rate profiles ahead of today’s BoC decision.
  • Front GoC yields remain more than 40bps below their 2007 peak vs less than 10bps for Tsys.

GoC 2Y yieldSource: Bloomberg

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