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Front GoCs Holding Bulk Of Post-CPI Sell-Off, Kozicki Ahead

CANADA
  • GoCs have been less willing to retrace post-CPI losses than has been the case in Treasuries, especially at the front-end.
  • The 2Y yield sits 7bps higher post-CPI for +10bps on the day (vs +2bps for Tsys), at 4.876% off an earlier high of 4.892% that marked a fresh high since 2001.
  • 10Y yields are still +9bps to limit the bear flattening, but 2s10s still slips to -104bps for levels last seen on Aug 31, the day before notably softer than expected CAD GDP for Q2.
  • Still to come, BoC Dep Gov Kozicki speaks on the impact of household differences on mon pol, with remarks published 1345ET and the speech itself at 1400ET to be followed by audience but not media Q&A.

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