Free Trial

GoCs Off Highs But Holding Decent Rally Ahead of BoC’s Beaudry

CANADA
  • GoCs have seen some recent cheapening off session highs, more notably so at the long end but with the front end starting to see more traction.
  • They maintain a decent rally on the day though (2YY -6.2bps, 10YY -3.8bps), bull steepening after yesterday’s large bear flattening on the BoC with mention of excess demand persistence and worries inflation could be stuck materially higher than target.
  • The steepening is in contrast to the flattening in Tsys today, perhaps a view that risk is tilted to Dep Gov Beaudry more likely coming in less rather than more hawkish than yesterday’s statement. Remarks published 1510ET, speech begins 1525ET and media Q&A 1645ET.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.