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MNI BRIEF: EU Budget Commissioner: Fiscal Rules Deal Closer

Chicago Business Barometer™ - Surges to 55.8 in November

CANADA Q3 ANNUALIZED GDP -1.1% VS +0.2% EXPECTED

Rise In Unemployment As The Newly Active Fail To Find Work

US EIA:NAT GAS STORAGE +10 BCF TO 3,836 BCF NOV 24 WK

MNI: US NAR OCT PENDING HOME SALES INDEX 71.4 V 72.5 IN SEP

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

MNI BRIEF:Macklem-Fiscal Policy Turning Unhelpful On CPI Fight

MNI BRIEF: Stabilizing Prices Helps BOC Turn Neutral-Freeland

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".
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