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GoCs Continue Sizeable Underperformance To Tsys

CANADA
  • GoCs are holding reasonable underperformance to Tsys since the open, cheapening 4-6bps vs 1-4bps.
  • It sees the 2Y Can-US yield differential at -42.5bp as it continues to narrow sharply from the -60bps earlier this week, back at sustained highs seen since the BoC’s surprise October downshift (having been -25 to -30bps before that).
  • CAD GDP plus US PCE/durable goods ahead at 0830ET.

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