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GoCs Pare Losses After 2YY Touched Fresh High Since 2007 Pre-BoC

CANADA
  • GoCs have seen some outperformance to Tsys open up ahead of the BoC decision, about half of which has come since and despite another strong increase in ULCs as productivity flounders.
  • 2YY are now +0.5bps on the day at 4.384% (-2.7bp since ULCs) vs +5.3bps for 2Y Tsy.
  • Context is important though as the earlier session high of 4.4135% shortly before the data built on yesterday’s clearance of Mar 8 cycle highs for the highest 2Y yield since late 2007.
  • MNI BoC Preview can be found here.


Historical 2Y GoC YieldSource: Bloomberg

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