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GoCs Mildly Underperform Through 2-5Y Ahead Of US Data, 5Y Auction

CANADA
  • GoC mildly underperform Tsys at the front end to belly and in line further out, with yields 1.5-2bps higher across the curve.
  • A mixed start for Canada’s two largest banks hasn’t elicited much reaction in a relative rates space (RBC C$2.84 vs 2.70 est, TD C$1.99 vs 2.04 est on adj EPS basis).
  • Upcoming US data and Fedspeak likely dictate proceedings today although the 5Y GoC auction at 1200ET could be of note after a recent string of low bid-to-cover results.

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