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GoCs Maintain Outperformance To Treasuries

CANADA
  • GoCs have bull flattened (2YY -1.9bps, 10YY 3.1bps) and keep to the recent trend of outperforming Treasuries, with Can-US yield differentials hovering at or near lows since April/May.
  • These latest moves tally with the earlier MNI interview with Tony Bonen, a labour market adviser to federal and provincial governments, on how Canada more likely faces a recession than a wage spiral.
  • Multiple second tier local data releases ahead plus US Empire and NAHB indexes, all prior to tomorrow’s Canadian CPI report for July.

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