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GoCs See Front End Outperformance

CANADA
  • GoCs see modest front-end outperformance to Tsys after the open, in potential spillover with Treasuries rallying further after increased bank uncertainty following a larger than expected drawdown in First Republic deposits in Q1.
  • 2YY -5.1bps (Tsys -3.6bp) and 10YY -5.6bps (-5.3bps). 2YY touch lows since Apr 13.
  • Little on the local docket with only bill sales scheduled, leaving spillover from a string of second tier US data releases and further earnings as potential drivers.

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