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GoC Yields Extend Session Highs

CANADA
  • Hard to see latest drivers but GoC yields across 2-10Y tenors, now up 12bps in the front-end to belly and 10bps for 10Y.
  • Can-US yield differentials continue to narrow: 2Y at -39bps, 10Y -56bps, both close to highs since the BoC’s surprise Oct downshift.
  • Move coincides with USDCAD stepping to new session lows to lows since Dec 15 at 1.3563. Support seen 1.3519 (Dec 14 low).

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