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GoCs Modestly Outperforming Treasuries Ahead Of CPI

CANADA
  • GoCs sit with a tentative cheapening across the curve with yields circa 2bps higher through 2Y, 5Y and 10Y tenors following a subdued open.
  • The broadly parallel shift keeps curves heavily inverted, just off pre-US CPI lows with 2s5s and 2s10s still at -39bps and -50bps respectively, remaining at levels last seen in 1990.
  • A return to outperformance to Treasuries after yesterday’s brief underperformance sees Can-US yield differentials back close to recent lows with the 2Y level pegging and 10Y at -9bps.

Canada 2s5s and 2s10s in historical perspectiveSource: Bloomberg

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