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GoCs Outperform and USDCAD Extends Gains On Retail Sales

CANADA
  • GoCs outperform Tsys with the retail sales data, with 2YY -1.5bps since the release vs +1bp for Tsys. The front-end led rally on the data sees a more parallel rally on the day for GoCs, with 2-10Y yields now down 5.5-6bps.
  • USDCAD pushed on to touch a fresh session high of 1.3593. It’s only a small move having cleared resistance at 1.3575 with a high of 1.3584 shortly before the data. Next up lies a key resistance at 1.3655 (May 26 high).

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