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Front GoC Yields See 6bp Climb Post Jobs Report

CANADA
  • Approaching an hour after the labour data, GoC yields sit 3.5-6bps higher since the release and are led by the front end, in contrast to 0.5-2bps for Tsys.
  • It leaves the 2YY +3.7bps on the day having easily more than reversed the shift rally that was seen just ahead of the release.
  • The moves are supported in rates space, with the front BAU3 implied yield climbing 1.5bp building to 3.5-5bp increases through 2024 contracts.
  • The move eats into yesterday’s flattening, with the BAU3/Z4 spread trimmed 3.5bps to -60.5bps although it remains off recent absolute lows of -50bps from mid- to late-Aug.

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