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GoCs Bull Steepen, USDCAD Back From Bull Trigger

CANADA
  • FI: GoCs bull steepen in a reversal having opened at new cycle highs from the belly outwards. With 2YY -6bps, 10YY -1bps and 30YY +1bps, the front-end underperforms Tsys but long-end outperforms.
  • FX: USDCAD trades +0.4% at 1.2918 having earlier hit 1.2954 vs the bull trigger of 1.2964 (Dec 20, 2021 high). CAD fares better than other risk sensitive majors with tight yield differentials helping (Can-US is 0bp for 2Y, -2bps for 10Y).
  • Data: Building permits slid 9.3% M/M in Mar after +21% M/M in Feb when two hospitals were issued. Residential permits trended higher, required to help take some of the heat out of the housing market.

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