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GoCs See Sizeable Paring Of Post-Data Losses

CANADA
  • GoCs continue to pare losses seen after US data, tracking front end Tsys but with increasing outperformance along the curve for a more modest twist steepening (cash benchmarks range from almost 2.5bp richer to 2.5bp cheaper).
  • The earlier losses saw the 2Y yield peak at 4.9946% on an ask basis, nudging 5% for the first time since July 2001, but it has since dropped back to sub 4.95%.
  • Canadian data included a strong increase in the number receiving regular employment insurance benefits back in July, corroborating the recent increases in the unemployment rate.
  • US existing home sales still to come before C$1.25B of 30Y GoC supply at 1200ET.

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