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GoCs Broadly In Line With Tsys, Quebec Inflation Relief Eyed

CANADA
  • GoCs trade broadly in line with Tsys shortly after open with a bull steepening (2YY -7.3bps, 10YY -5.2bps), consolidating yesterday’s narrowing in Can-US negative yield differentials albeit still depressed at -35bp and -51bps for the 2Y and 10Y respectively.
  • News recap: Premier Legault won another term in Quebec, with his CAQ party controlling more than 70% of seats. He has promised to reduce income taxes, send C$400-600 to lower income residents to help with high inflation whilst also promising tens of billions in spending to financially help seniors, improve health services and build infrastructure.
  • HSBC weighs sale of operations in Canada with the review at an early stage with no decisions made – Sky News.

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