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GoCs Marginally Underperforming Ahead Of Important US Data

CANADA
  • GoCs see slight underperformance to Tsys as they settle down after the open, with a modest rally led by the belly with 5YY -3.5bps compared to the front end led rally in Tsys with 2YY -4.1bps.
  • With a 10Y Can-US yield differential of -50bps, there has been limited outperformance ahead of the Jun 1 index extension (Jun 2 more concentrated in provincials).
  • In the near-term, upcoming US data is a key driver for the day with PCE and preliminary durable goods next at 0830ET amidst a blank domestic docket after Canadian Western Bank also slightly missed adjusted EPS estimates.

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