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GoCs Extend Outperformance To Treasuries With Key US Data Eyed

CANADA
  • GoCs have seen smaller fluctuations than Tsys after the earlier bid and reversal on Taiwan headlines from The Messenger, whilst outperforming across the curve.
  • With 2Y GoC yields -2.6bps vs +0.2bps for Tsys, the Can-US 2Y spread has widened further to -14bps, back to pre-BoC levels via a brief spell in positive territory after it hiked 25bp last week.
  • A light domestic docket for the first half of this week (today only saw weekly consumer confidence dip after a recent run of increases) puts even more weight on spillover from tomorrow’s US CPI and the FOMC decision on Wed.

2Y GoC yields (white), Treasury yields (yellow) and spread (green)

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