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GoCs Nudge Further Underperformance

CANADA
  • GoCs eke out further underperformance to Tsys after the open, with yields 2.5-4.5bps higher across the curve vs 1.5-3.5bps following Friday’s 14bp underperformance for 2YY.
  • It pushes Can-US yield differentials back near to or above Friday’s highs, with the 2Y at -27bp and 10Y at -45bp, off mid-Dec lows of -60bp and -70bp at levels from before the BoC’s surprise 50bp downshift back in October.
  • Building permits headline a light docket, with an equally light slate in the US, before Fed Chair Powell and BoC Gov Macklem both speak at a Riksbank event tomorrow in separate panels.

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