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GoCs Extend Outperformance To Treasuries

CANADA
  • GoCs have been reluctant to follow the cheapening seen in Treasuries over the past two hours, trading 3-5.5bp cheaper in contrast to the 5.5-78bps in Tsys.
  • It builds on GoC outperformance seen after both jobs reports came in softer than expected on Friday, with CAN-US yield differentials pushing recent lows with -49bps for 2Y and -86bp for 10Y.
  • Not a direct driver but at least helping support the latest outperformance at the margin, weekly consumer confidence has resumed its slide whilst the pocketbook component has touched fresh lows since pandemic lows and otherwise is at levels last seen in 2013 (see earlier bullet).

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