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GoC Flattening Continues

CANADA
  • GoCs modestly underperformance Tsys at the front end shortly after the open, despite CAD rates tracking more in line with their US counterparts in very early BAX trading.
  • The GoC curve modestly bull flattens, with 2YY -2.9bps & 10YY -4.4bps for 2s10s back at -129bps and not far from recent fresh multi-decade sustained lows of -134bps seen around the turn of the month.
  • Today sees some lower tier data including wholesale trade and international securities, before tomorrow’s important CPI release for June after May saw one month of progress but didn’t sway the recent 3-month trend rate.

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