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GoCs Rally With FSR Presser But 2Y Yields Still Significantly Higher Post CPI

CANADA
  • GoCs have seen a sizeable rally over the past 15mins through the BoC’s FSR presser, seemingly on Gov Macklem keeping to prior mon pol remarks and not making more of the recent CPI beat.
  • 2Y yields have led the way lower, now down -5bps since the release of the FSR at 1000ET (presser started 1100ET) but still +2.5bps on the day (Tsys +6.5bps).
  • It’s likely some positional play after huge increases in the 2YY since Tuesday’s CPI release, with the 2YY still 26.5bps higher than just before the release.

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