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GoCs Outperform Despite Stronger IPPI, House Prices

CANADA
  • GoCs extend their recent rally, outperforming Tsys in the process despite stronger than expected IPPI inflation (caveated by a flat print for IPPI ex energy & petroleum) and house prices seeing their second strongest monthly increase on record for the Teranet-National index.
  • It leaves 2YY -2bps and 10YY -6.5bps, with the bull flattening pushing 2s10s down to -105bps after yesterday’s close at -100bps was the highest since May (following US 2s10s also touching highs since May yesterday).

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