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GoCs Pare Losses, Lower Tier CAD Data Still Ahead

CANADA
  • GoCs have pared a sizeable portion of their losses seen with the open, now trading 1-1.5bp cheaper for a very modest bear flattening.
  • The curve trades 5-5.5bp cheaper compared to levels just before Tuesday’s CPI, albeit having rallied sharply into the release.
  • BoC’s Macklem touched upon this release yesterday, saying it was encouraging and good news for Canadians, but only a single month with not yet a clear trend of renewed progress [despite the three-month core rate dropping to 3% below the sticky 3.5-4% range seen previously].
  • Retail sales headline CAD data tomorrow but we still see some today despite the empty Bloomberg calendar, including advance wholesale trade for Oct and financial stats for enterprises for Q3 (both 0830ET).

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