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GoCs Follow Treasuries In Paring Gains

CANADA
  • GoCs have for the most part followed the swings in Treasuries today, paring large gains for relatively little change on the day (yields currently 1-3.5bps lower across the curve).
  • Some modest underperformance to front end Treasuries on the day sees the 2Y Can-US yield differential narrow slightly to -37bps after Thursday’s more earnest move off mid-week lows of sub -50bps.
  • Next week sees BoC Dep Gov Gravelle speak at National Bank’s financial services conference Wed before monthly GDP for Jan/Feb flash Fri after today’s mixed retail data (as much as data can have an impact at the moment).

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