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GoC Yields Surge On BoC 25bp Hike

CANADA
  • 2Y GoC yields jump on the BoC decision to hike 25bp reflecting their view that mon pol was not sufficiently restrictive to bring supply and demand back into balance, with excess demand more persistent than thought.
  • Marginally off highs, 2YY are +9.5bp since the decision for +8.5bp on the day having touched fresh highs since 2007.
  • 2s10s tilts even more heavily inverted to -113bps.
  • GoCs still don’t underperform Tsys on the day though, which see decent spillover from the decision.

Source: Bloomberg

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