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GoCs Paring Gains But Still See A Solid Rally

CANADA
  • GoCs have seen a small paring of gains off session and week highs after a larger move in Treasuries.
  • In yield space it translates to still -7.5-8bp declines through 2-10Y tenors with the 30Y modestly underperforming with -6bps, with the shift lower helped by softer than expected US data.
  • Near-term BoC meetings still envisage little change but currently entertain around 15bp of cuts by year-end with little new messaging coming from Macklem & Rogers at the Senate.

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