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GoCs See Sizeable Spillover From Debt Talk Impasse

CANADA
  • GoC yields are off lows but have still tumbled along with Tsy yields post debt talk impasse headlines.
  • Moves are led by the front end with 2YY -8.5bps vs -0.5bps for Tsys.
  • Tracking Treasury yields since the headlines, the 2Y Can-US yield spread of -27bp remains down from sustained -10bp levels from two days ago that were last seen in Sep’22.

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