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GoC New Post-1990 Lows For 2s10s

CANADA
  • GoCs are reversing the early session cheapening to leave them near a richer open, more so at the long end for a solid bull flattening with 2YY -3.5bps and 10YY -6bps.
  • Long end yields have fully unwound Friday’s shift higher when a storming US payrolls report was offset somewhat by weaker growth implications from a second monthly contraction in Canadian employment.
  • The combination pushes 2s5s and 2s10s to new flats at -43bps and -53bps, fresh post-1990 lows.
  • With only limited further outperformance to Treasuries today, Can-US yield differentials largely keep to recent lows with the 2Y +0.5bps and 10Y -9bps.

GoC 2s10s (white) and 2s5s (pink)Source: Bloomberg

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  • GoCs are reversing the early session cheapening to leave them near a richer open, more so at the long end for a solid bull flattening with 2YY -3.5bps and 10YY -6bps.
  • Long end yields have fully unwound Friday’s shift higher when a storming US payrolls report was offset somewhat by weaker growth implications from a second monthly contraction in Canadian employment.
  • The combination pushes 2s5s and 2s10s to new flats at -43bps and -53bps, fresh post-1990 lows.
  • With only limited further outperformance to Treasuries today, Can-US yield differentials largely keep to recent lows with the 2Y +0.5bps and 10Y -9bps.

GoC 2s10s (white) and 2s5s (pink)Source: Bloomberg