MNI BRIEF: Fed's Collins Sees Sept or Dec Cut This Year

MNI BRIEF: Fed's Collins Urges Patience On Judging Inflation

CORRECTED: MNI BOE WATCH: On Hold And Splits Set To Continue

MNI China Daily Summary: Tuesday, June 18

MNI: PBOC Net Injects CNY84 Bln Via OMO Tues; Rates Unchanged

CHINA PBOC CONDUCTS CNY86 BILLION VIA 7-DAY REVERSE REPOS TUES

MNI: JAPAN MAY EXPORTS +13.5% Y/Y; APRIL +8.3%

MNI: UK MAR-MAY MEDIAN PAY AWARDS +4.6% :Brightmine

MNI: US TSY TICS NET FLOWS IN APR +$66.2B

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GoCs Outperform Ahead of GDP, RBC Recommends Long 10Y

CANADA
  • GoCs slightly extend the decent shift richer at the open, with 2-10Y benchmark yields all within +/-0.5bps of -5bps on the day and only the 30s lagging with -4bps.
  • GoCs modestly outperform Treasuries across the curve, most notably at the front end with 2YY Tsys -2.7bps.
  • RBC recommended long 10Y GoCs, with an entry 3.25%, target 2.75% and stop 3.51%, with a 2-3 month trading horizon. Rationale: "Yields (5s-30s) are near the 90th percentile of the 1yr range. It has paid to fade the extreme levels".
  • "10y tenor chosen over (i) 2s to protect against BoC being re-priced higher, (ii) preferred to 5s given that tenor remains expensive on an RV basis (ie. fly very depressed), and (iii) superior to 30s as 10s30s tends to steepen when 10s move lower".
BulletMarketsFixed Income BulletsHomepageCanada Bank of Canada Market News

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.