May 07, 2024 18:46 GMT
GoCs Bull Flatter In Line With Treasuries, Awaiting A Catalyst
CANADA
- GoCs have bull flattened today, with front yields little changed on the day but 10Y yields 3.5bps lower, in similar moves to Tsys amidst a thin docket.
- Can-US yield differentials sit at the lower end of last week’s ranges, with -68bps for 2Y and -88bps for 10Y.
- Nearer-term, BoC-dated OIS shows 17-18bp of cuts for the June meeting whilst CORRA futures show just over 70bps of cuts through 2024 contracts.
- Recent pricing has been led by US factors, including a sizeable rally in rates since Friday’s payrolls report, with the next main local steer not due until Friday’s labour report for April offering.
- BoC’s Senior Dep Gov Rogers speaks later in front of the House committee on Public Accounts at 1530ET with no prepared remarks. Thursday’s Financial System Review should be more notable.
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