November 14, 2022 13:33 GMT
GoCs See Sizeable Long End Outperformance To US
- GoCs see a small bid on the Biden-Xi White House readout, maintaining the bear flattening post the long weekend in contrast to a bear steepening in Tsys.
- Outperformance to Tsys across the curve but more so at the long end with 10YY +2.5bp vs +8bps, pushing the differential to -73bps and closer to recent sustained lows of just below -80bps.
- It sees Canadian 2s10s slip 3bps to -70bps, nearing prior sustained lows of circa -75bps at levels otherwise not seen since early 1990.