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GoC Yields, USDCAD Dragged Higher By Powell

CANADA
  • 2Y GoC yields are currently +3.5bps on the day at 1.270% and 1.5bps off post-pandemic highs, after being dragged higher by Powell. That’s from having at one point been -7bps on the initial BoC announcement.
  • That pales into insignificance compared to 2Y USTs up +13.5bps at 1.154%, with the spread of 11bps the lowest it’s been since Apr’21.
  • USDCAD has been restrained given the move in rates, +0.4% at 1.2676 with a 1%pt swing on the day. This keeps it within the range for the week and as such below initial resistance of 1.2702 (Jan 24 high).

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