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GoCs Extend Initially Mild Rally After Retail Sales

CANADA
  • GoCs have continued to rally at a swift pace after the tepid trends on display in the retail data, with the 2Y yield now 4bps lower since the release for -3.5bp on the day.
  • It closes the gap to the -3.5bps for 2Y Tsys, pushing the Can-US yield differential back to -19bps. For perspective, it continued to increase to a high of -14bp the day after strong CAD CPI, up strongly from circa -30bps pre CPI.

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