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GoCs See Mild Underperformance Ahead Of US PPI

CANADA
  • 2Y GoCs tracking -1.5bps vs -3bp Tsys with the Can-US yield differential hovering between -45-50bps since rising 15bps on the BoC’s 50bp hike on Wed.
  • Little change on Dep Gov Kozicki emphasising increased data dependency with a high bar for forceful action ahead.
  • Cap util for Q3 (seen falling off post-pandemic highs) will be overshadowed by US PPI at 0830ET.

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