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GoCs Play Catch-Up

CANADA
  • GoCs play catch-up having been closed yesterday for Victoria Day, with 2YY +1bp and the rest of the curve +3.5-4.5bps despite the broad rally seen elsewhere.
  • It sees relatively little change in Can-US yield differentials from late Friday, at +6.5bps for the 2Y and +6bps for the 10Y, the high end of three-month ranges but off recent peaks.
  • The bond moves bely a relative lack of change in the near-term BAX rate path, which sits little changed, albeit in very early trade as Canadians come back to their desks.

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