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GoC Bid Extends With Sizeable Outperformance To Treasuries

CANADA
  • GoCs have extended a recent bid, mostly pushing back nearer post-employment report highs and breaking through them in 30s.
  • 2-10Y benchmark yields are down circa -6.5bps from pre-employment levels, for a 3-4bp decline on the day.
  • The 2YY leads, which at 4.49% is almost 13bps below fresh highs since 2007 seen after the BoC hiked 25bps along with widely hawkish commentary.
  • With 2Y Tsy yields pushing +7bps on the day, the 2Y Can-US spread widens back to -10bps after its brief foray into positive territory for the first time since September.

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