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Further Flattening In Spillover From 30Y Tsy Auction

CANADA
  • GoCs see a bid in spillover from the US 30Y auction stopping through, with the 30Y GoC seeing a 4.5bp intraday rally for just +0.9bp on the day.
  • The 2Y though still sits close to earlier fresh post-2007 highs of 3.738% (currently +13bps at 3.729%) in response to US CPI (lagging +19bps for 2Y Tsy).
  • It pushes both 2s10s and 5s30s alike down 7-8.5bps on the day, 5bps off post-1990 lows for 2s10s and +15bp off cycle lows for 5s30s, markets re-assess the impact on growth from more aggressive near-term monetary policy tightening.

Source: Bloomberg

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