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Front GoC Yields Nearing To Triple Top Resistance

CANADA
  • Front GoC yields have pushed to new session highs, above the initial post-Powell spike, as they follow Treasury yields higher after the 3Y auction.
  • At 4.315% (+6.7bps on the day), the 2Y GoC yield approaches cycle highs forming a triple top just shy of 4.34% (topping out with 4.338 on Feb 27).
  • Ahead of tomorrow’s BoC decision (unanimously expected unchanged), the yield sits 68bps higher than before the Jan 25 decision, dragged higher by the US higher for longer rates push as opposed to local factors with mixed data and its newly adopted conditional pause.


2Y GoC yieldSource: Bloomberg

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